Update the board of directors with timely, thorough informationĪlign the company’s budget with corporate goals Oversee departmental managers, and overrule their decisions when necessaryĭevelop and communicate the company’s vision, policies, and strategies All board members are considered peers, so the board’s decisions are not solely the chairman’s.Ī CEO has the following responsibilities: Notably, a chairman does not have managerial oversight over other members of the board. In a real-world setting, the board of directors needs to balance short-term profitability goals with long-term stability. The chairman acts as a senior representative of shareholders, meaning their role is essentially ensuring the company is maximizing profits.

Īs the head of the board, the chairman is an executive who wields substantial power.The board of directors is typically composed of both internal and external members, representing both managerial and shareholder interests. The board of directors oversees holds the ultimate decision-making authority in the company.

Meet at least quarterly to vote on major strategic decisions Handle structural issues within the company The board of directors appoints the CEO, and the chairman and CEO work together to lead the company.Ī board of directors has the following responsibilities:Įnsure the company’s stability and profitability To answer this question, we’ll go over each position’s responsibilities and highlight the differences between a chairman and a CEO in this article.Ī chairman is the head of a company’s board of directors.Ī CEO is the head of the company’s internal leadership structure. These two individuals are both at the forefront of the organization’s mission and strategies, but what is the difference between the two roles? When you hear about positions of leadership in companies, you’ll likely hear about the chairman of the board and the CEO. The chairman of a company’s board of directors is superior to the CEO meaning a CEO must seek board approval before making any significant decisions. A company’s chairman is the head of its board of directors while A CEO is a company’s top decision-maker who establishes strategic processes and ensures that progress is made toward corporate objectives.

What is the meaning of ceo