©2014 INSEAD Case Study
Two young Russian entrepreneurs create a sizeable and profitable construction business through a series of acqusitions and restructuring efforts. As it begins to grow at high pace, they seek to create an effective system of corporate governance. They engage the ex-CEO of an investment company as chairman of the newly formed board with a majority of independent directors. The case describes his leadership, challenges, achievements and mistakes, showing how an effective board emerged from collective actions of its directors. The effectiveness of the board and the chairman's leadership are tested by a PR crisis provoked by a media interview given by the latter.