Caterpillar Inc.’s CAT 0.35% chief executive Jim Umpleby has been named chairman of the machinery giant’s board as well, cementing his leadership nearly two year into his tenure.
The move reverses Caterpillar’s decision to split the CEO and chairman positions last year. Corporate governance experts say that having a separate chief executive and board leader can improve oversight and decision-making for many companies. About 40% of companies in the S&P 500 keep their CEO and chairman positions separate, according to corporate data provider MyLogIQ.
Caterpillar said on Thursday that the board reviews the leadership structure every two years and agreed to give Mr. Umpleby both roles at the board’s Dec. 12 meeting.
Some corporate advisers and executives say one leader holding both roles can manage more decisively. “By having those two positions at the same time, the CEO can feel less pressure and less constrained in terms of making all kinds of decisions,” said M.K. Chin, a business professor at Indiana University.
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