CEO vs Chairman: Difference and Comparison

The Chief Executive Officer (CEO) and the Chairman are both parts of the management team of every company. They have some similar responsibilities, and at times, both roles are fulfilled by a single person.

Key Takeaways

  1. The CEO is responsible for a company’s overall management and direction, while the Chairman oversees the board of directors and provides guidance and support to the CEO.
  2. The CEO is a member of the board of directors, while the Chairman is the head of the board.
  3. The CEO is responsible for day-to-day operations and implementing the company’s vision and strategy. At the same time, the Chairman is focused on ensuring the board is functioning effectively and providing oversight to the CEO.

CEO vs Chairman 

CEO stands for Chief Executive Officer and is the representative of a company that is in charge of the executive team and makes important strategic decisions. The chairman is the head of the board of directors of a company or organization that evaluates the performances of the CEO and makes recommendations.

CEO vs Chairman

The CEO (Chief Executive Officer) of a company is the typical face or representative of the company. They are the head of the executive team, and the entire executive team members are answerable to them.

The Chairman of a company acts as the Head of the Board of Directors or the Head of Trustees. They exercise more authority and power in the company than the Chief Executive Officer (CEO).

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Comparison Table

Parameters of Comparison   CEO  Chairman 
 Authority and power   Exercise less power and authority than the Chairman.   Exercise more power and authority than the CEO. 
 Hire and Fire  Does not have the authority to hire and fire the Chairman of the company.    Has the authority to hire and fire the CEO of the company. 
 Board of Directors  Accountable to the Board of Directors.   Has been elected by the Board of directors to act as the Head of the Board.  
 Position   Head of the executive team.  Elected to act as the Head of the Board of Directors or Trustees.  
 Daily Operation   Present and included in the daily operation of the company.   Does not necessarily play an active role in the everyday management of a company.  

What is CEO? 

The CEO (Chief Executive Officer) is the typical face or representative of a company. The CEO is in charge of the executive team, and all of its members report to him.   

An organization’s CEO is primarily responsible for its overall success and serves as the top management. The CEO takes the responsibility of making critical strategic decisions for the growth of the company.

The CEO of a company acts as the representative of the particular company through press conferences, professional organizations, and community interactions.  

ceo

What is Chairman? 

The Chairman of a company acts as the Head of the Board of Directors or the Head of Trustees. They exercise more authority and power in the company than the Chief Executive Officer (CEO).

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They also regularly evaluate the performances of high-level managers like the President or the CEO and make recommendations for improvements.  

The Chairman, however, does not necessarily play an active role in the everyday management of the company. They work outside the daily operations of a company.

chairman

Main Differences Between CEO and Chairman 

  1. The CEO of a company is directly accountable to the board of directors for their actions, whereas the Chairman of a company has been elected to serve as the head of the board of directors or trustees. 
  2. The CEO is present and included in the daily operations of a company. On the other hand, the Chairman is not necessarily involved in the everyday management of the company. 
Difference Between CEO and Chairman
References
  1. http://www.financialdecisionsonline.org/archive/pdffiles/v10n1/sridharan.pdf 
  2. https://link.springer.com/article/10.1007/BF02755984 

Last Updated : 26 August, 2023

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9 thoughts on “CEO vs Chairman: Difference and Comparison”

  1. Before reading this article, I was confused about the differences between the CEO and the Chairman. This really helped clear things up for me.

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