What governance structure does the Cadbury report advocate for?

The Cadbury Report, published in 1992 in the UK, was a seminal document focused on corporate governance and aimed at improving the standards of corporate governance in the wake of financial scandals. One of its key recommendations was the separation of the roles of Chairman and Chief Executive Officer (CEO). This governance structure is advocated to ensure a balance of power and to prevent any one individual from having too much control over the board and the company. By having separate individuals fulfill these two critical roles, the report promotes greater accountability, encourages better decision-making, and enhances the board's ability to represent the interests of shareholders and stakeholders effectively.

This separation fosters a system of checks and balances within the corporate governance framework, helping to mitigate the risks of corporate mismanagement and conflicts of interest. This approach is an essential aspect of modern corporate governance practices and has been adopted widely across various sectors as a means of strengthening the integrity and transparency of management processes.