The dual role of a Subsidiary CEO, and their relation to the parent company

Abstract

Following on the studies of specific regions, authors also explore some of the practical insights of IB / IM / CM. In the chapter on the dual role of a subsidiary CEO, Salamon (2024) – a former subsidiary CEO himself – explores the complex position held by CEOs of subsidiaries within multinational corporations. The central focus is on how subsidiary CEOs navigate the balance between their independence in local operations and their subordination to the parent company. Due to advancements in information technology, parent companies increasingly exert control not only over strategic decisions but also over daily operations, often perceiving the subsidiary CEO as a middle manager rather than an independent leader. This dynamic creates tension between the CEO's need for autonomy and the parent company’s desire for uniformity and control across its global operations.