Chairman vs. CEO: What’s the Difference?
The main difference between chairman and CEO is that a chairman is the highest-ranking officer of the board of directors of a company whereas CEO is who is the highest-ranking officer of a company or corporation.
Before we move to more differences, let’s first understand Chairman and CEO:
- Chairman: A chairman is the highest-ranking officer on the board of directors of a company. The role of the chairman is to oversee the board and ensure that it is effective. The chairman is responsible for setting the strategic direction of the company in conjunction with the board of directors.
- CEO: A CEO, stands for Chief Executive Officer, is the highest-ranking executive officer responsible for managing the day-to-day operations of the company. The CEO is responsible for executing the company’s strategic direction and ensuring that the company achieves its financial and operational goals.
Now, let’s get to Chairman vs CEO:
Major differences between Chairman and CEO
| Chairman | CEO |
|---|---|
| The Chairman of a company is the head of the board of directors and leads the board meetings. | The CEO is responsible for managing the company’s day-to-day operations. |
| The Chairman is typically a non-executive position, meaning they are not involved in the company’s daily activities. | The CEO is an executive position, meaning they are involved in the company’s operations. |
| The Chairman is responsible for setting the strategic direction of the company. | The CEO is responsible for implementing the strategies set by the board of directors. |
| The Chairman typically has a long-term perspective and oversees the overall financial health and stability of the company. | The CEO focuses on meeting short-term financial goals. |
| The chairman is accountable to the board of directors. | The CEO is accountable to the board of directors and shareholders. |
So, these are the main differences between the entities.
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