What’s the difference between the Chairmen and the CEO?
Chairman is the highest office in the organization (company). The chairman is the head of the Board of Directors (deliberative assembly). The chairman needs to lead the board meetings and conducts the board’s business in an orderly fashion. The chairman, as a part of the board, must appoint or approve the CEO as well as set the strategic path the company is following, by setting the annual goals and long-term programs. The chairman gives these orders to the CEO; the CEO has to follow the guidelines set out by the board while achieving the highest profit possible as the chairman supervises.
The Chairman And The CEO
The chairman is, most of the time, representative of a group of shareholders or individuals in the company. In public companies there is also a Non-Executive Director whose job is to keep the interest of the public (the small shareholders) in mind. This is because sometimes the public doesn’t have enough shares to have real power and so they need someone to keep an eye on the private representatives. The Non-Executive Director job is to monitor and alert the public to any exploitative behavior of the board to the small shareholders.
The CEO, on the other hand, needs to follow the strategic path that the Board of Directors set. He also needs to inform the board on any new developments that occurred in the market that might lead to changes in the master plan or obstacles he might foresee as problematic in the future. The CEO can also suggest strategic plans to the board but he can’t force them to approve those plans.
The CEO must also deal with the day-to-day problems such as HR, financial, marketing and logistical planning. In some cases the CEO can also initiate business plans; some boards even delegate the CEO power to change the strategic plan in case of any given event such as sharp market changes.
Omri.
The CEO Game.
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