It’s time to let shareholders choose the CEO

IN MORE than half of the world’s democracies, voters directly elect their heads of state. Lucky them. Those of us living in countries such as the UK, which goes to the polls in July, are not allowed to choose our own leader.

Such is the parliamentary system of government. The search for a prime minister is outsourced to the politicians elected. After all, they are supposed to represent voter interests. It saves time, too.

But is this approach right for public companies, where elected board members are responsible for hiring a chief executive? Investors are never given a list of candidates and asked to vote.