What Is the Difference Between a Chairman and CEO?
In the business world, there are different roles that executives can hold within a company. Two of these roles are the executive chairman and the CEO. Although both positions are part of the top management team, they have different responsibilities and functions. In this article, we will discuss the differences between the executive chairman and CEO.
Role of the CEO
The CEO, or Chief Executive Officer, is the top executive in charge of the day-to-day operations of a company. The CEO is responsible for making strategic decisions that will drive the company's growth and profitability. The CEO works with other members of the management team to develop and implement the company's goals and objectives.
Role of the Executive Chairman
The executive chairman, on the other hand, is not involved in the day-to-day operations of the company. Instead, their primary responsibility is to oversee the board of directors and ensure that the company is meeting its strategic objectives. The executive chairman typically acts as a liaison between the board and the management team, and helps to guide the company's long-term strategy.
CEO vs Executive Chairman
Another key difference between the executive chairman and the CEO is their level of involvement in the company's management. The CEO is typically more involved in the company's operations, while the executive chairman has a more hands-off approach. This means that the CEO is responsible for the day-to-day management of the company, while the executive chairman is responsible for ensuring that the company is being run in accordance with the board's strategic vision.
Executive Chairman Has Higher Authority
One of the reasons companies choose to have an executive chairman is to separate the roles of the CEO and the chairman of the board. This is done to avoid conflicts of interest and to provide a clear line of accountability. The executive chairman can also provide guidance to the CEO, as they have a wealth of experience and knowledge that can be invaluable in steering the company in the right direction.
CEO Is Involved in Day to Day
The CEO is responsible for the day-to-day operations of the company, while the executive chairman is responsible for ensuring that the company is meeting its strategic objectives. While both roles are important, they have different responsibilities and functions within the organization. Companies that separate these roles can benefit from increased accountability, better strategic guidance, and more effective decision-making.
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