Global governance and local bonds: CEO–chair role separation and executive relationship reconfiguration

Purpose This study examines how statutory governance reforms requiring CEO–chair role separation reconfigure top executive relationships. Drawing on social exchange and triadic interaction theory, the authors analyze how formal structural mandates interact with informal leadership bonds to influence trust, loyalty, authority and cohesion among the CEO, executive chair and members of the top management team. The authors explore how senior executives negotiate continuity and change in their relationships while adapting to global governance norms and balancing local relational traditions with international accountability and legitimacy expectations. Design/methodology/approach The authors pursued a revelatory case study in an emerging markets context with rare access into an emerging market multinational corporation that transitioned from CEO–chair duality to separate roles following regulatory reform. Data collection included 22 semi-structured interviews with the CEO, chair and all TMT members; over 450 hours of site visits; observations of meetings; and internal documents. The authors categorized and coded data thematically and structured their approach conceptually around an emergent triadic social exchange theory and methodologically to capture interdependencies across CEO–chair–TMT interactions. Findings Formal governance reforms reshaped executive role definitions but did not eliminate longstanding informal ties. Trust, loyalty and familial-style bonds persisted, influencing triadic dynamics in ways that sometimes reinforced and sometimes undermined formal structures. The executive chair exerted disproportionate influence, while prior TMT membership constrained the legitimacy of the new CEO. Triadic configurations highlighted asymmetries of power, mutual dependence and relational cohesion, showing how persistent socioemotional connections mediate formal institutional change. Research limitations/implications The study derives from a single firm in one emerging market regulatory context, limiting broad generalizability. Nevertheless, findings extend social exchange theory by applying a triadic lens to governance reform, moving beyond dyadic models of CEO–chair or CEO–TMT relations. Future research should explore multi-actor interactions across different governance systems, industries and regions and consider the inclusion of boards, additional heterogeneity dimensions and comparative institutional frameworks. Practical implications For boards and policymakers, findings underscore that mandating role separation alone does not guarantee stronger accountability or independence. Informal ties, often culturally embedded, can sustain influence and blur authority lines even after reform. Effective governance, therefore, requires not only formal structural compliance but also careful attention to relational dynamics among executives. Practitioners should proactively manage transitions, clarify expectations and cultivate balanced trust to ensure that role reconfiguration achieves both oversight and collaboration goals. Social implications The authors highlight how institutional reforms aimed at enhancing transparency and accountability intersect with relational traditions in emerging markets. By demonstrating how executives rely on personal trust and quasi-familial loyalty to navigate structural changes, the authors show the continuing salience of social capital in organizational governance. Findings encourage policymakers to consider cultural embeddedness when designing reforms, ensuring that governance frameworks accommodate both global legitimacy demands and local relational practices without creating unanticipated tensions. Originality/value The authors advance understanding of governance by applying a triadic social exchange perspective to the CEO–chair–TMT constellation, involving multple triadic groupings of the CEO, chair and individual members of the TMT. The authors show how formal governance reforms intersect with informal executive bonds to create hybrid relational structures. Through rare empirical access to elite leadership in an emerging market multinational, the authors contribute novel theoretical, contextual and practical insights to the governance literature. This study informs both scholars and practitioners seeking to understand the relational undercurrents of governance reforms in globalizing firms.