CEO Vs Executive Chairman – Know More

An executive chairman is a member of the board of directors and is often the head of the nominating committee and The CEO has the authority to hire and fire all levels of management.

CEO Vs Executive Chairman

While both positions may be valuable for your company at a very basic level, there are some key structural elements of the executive chairman position that many executives find uncomfortable — if not painful to accept.

About CEO

As CEO of a company, you are responsible for much more than mere “executive” duties. You are the visionary, the leader who turns potential into profits through strategic thinking and accomplishment. You motivate your team to achieve great things. And if your company is publicly traded, you’re also required to be in charge of meeting or exceeding stockholder expectations by executing on management’s strategy to create shareholder value.

Key Skills of a CEO

One of the most important skills a CEO must have is the ability to connect with their constituents. To do that, they need to be able to empathize with different opinions and needs that exist in their companies. A good CEO knows how to ask questions rather than allow assumptions about how an issue should be handled.

When CEOs are not considering every angle of an issue, it often leads them down a path ultimately unfavorable for their company or even society as a whole. They should never only consider the needs of their shareholders, but also consider the needs of their customers and society as a whole.

Jeff Bezos Career Advice
Jeff Bezos Career Advice

A CEO that ignores any one of those parties is not giving their company the best chances for future success and will ultimately bring about more problems than they fix. A CEO must be willing to be wrong for both themselves and their company, and accept that mistakes will happen.

  1. A major skill any CEO must possess is communication skills. It is not enough to simply know what needs to be communicated, but the CEO needs to be able to convey their message in a way that everyone can understand.
  2. CEOs need to have a good grasp of the English language, as this is crucial for both their business and their health. It is also vital for CEOs to understand all potentially negative or positive press about themselves and their company. Negative press can create more problems than they solve, but during economic downturns, it can aid in creating jobs.
  3. Another skill that is increasingly needed today is the ability to adapt. A CEO must adapt to the changing needs of the company, changing technology, changing competition, and changing socialization trends. This can be done by being willing to learn new skills and having a good understanding of emerging trends. If this is not done, especially in an economic downturn, it will be difficult for a business to survive and may even collapse before it was even started.

Main responsibilities and duties of a CEO

If you’ve been told that you have a lot of what it takes to be a good CEO, but don’t know what the job entails, then read on. This article will identify five main responsibilities and duties of a CEO. What do they entail? What is the feedback from company owners about their CEOs?

  • A successful CEO creates a unique business environment that inspires an atmosphere of creativity, initiative, and innovation. A CEO’s main responsibilities are to motivate employees, to ensure that the company meets its business goals, and to plan for the future. The job of a CEO is full-time, with no potential for promotion without firm direction in all departments of the enterprise.
  • The CEO is responsible for making sure that the company’s offerings and products are up to date and that they meet the needs of customers. To keep employees engaged, a CEO must communicate with them.
  • A CEO has a tremendous amount of responsibility for the morale and well-being of employees and their families. This includes seeing to it that adequate compensation, benefits, and perks are provided for all employees. A good CEO should also foster an atmosphere of teamwork, encourage volunteerism and team spirit.

About Executive Chairman 

The executive chairman position is structurally consistent across most publicly traded corporations, so it is a well-defined role. While it may seem like an easy way out of the “grunt work” responsibilities, the executive chairman role is still an active leadership position that comes with its own set of challenges. As the executive chairman, you are there to settle red flags quickly before they can sink your ship. You are there to be the company’s chief administrative officer, the treasurer, chief risk officer, chief corporate compliance officer, chief talent scout, chief marketing officer, and on and on. An executive chairman does not normally have day-to-day operational duties. When an executive chairman voluntarily relinquishes their position, they will be paid out for any unvested stock options and bonuses that would have been earned through their resignation date. 

Key Skills Of An Executive Chairman 

As an executive chairman, you need to possess certain skills to be successful at your job. Some of the skills of an executive chairman are as follows-

  • Making decisions to ensure the long-term growth of the company
  • Communicating effectively to all levels of staff, including executives and board members.
  • Maximizing shareholder value across a range of investments
  • Developing relationships with other stakeholders such as investors, employees, suppliers, partners, customers, etc. to win the trust and make effective decisions 6. Building trusting working relationships with team members 
  • Evaluating and developing talent to build a successful team 8. Managing change both strategically and tactically.
  • Company leadership

In general, executive chairs have a dual role encompassing strategic control of the business while also acting as stewards of the business’s reputation. To this end, executive chairs typically have legal obligations to represent the company in a manner that ensures compliance with laws and regulations while simultaneously protecting shareholder value. In this regard, executive chairs are required to apply appropriate oversight and due care in all areas of risk management from financial reporting, to physical security, information security, compliance with contracts, etc. In addition, the executive chairman is expected to design and implement a framework in which all employees in a corporation feel safe and comfortable raising concerns about fraud or compliance issues in a non-disruptive manner.

Main responsibilities and duties of an Executive Chairman 

As the top-ranking position on a company’s board of directors, an executive chairman is a person who has both a broad strategic vision and a broad operational scope.

An Executive Chairman typically oversees day-to-day operations, manages the company’s direction and the policymaking process, and usually ensures that the organization stays within its budget.

To become an Executive Chairman, one must first be appointed as such by either their company’s Board of Directors or by shareholders who hold over 50 percent of shares in the company.

The main responsibilities of an Executive Chairman include: 

– Managing day-to-day operations; 

– Managing the company’s business direction; 

– Ensuring that the company can stay within its budget; and, 

– Keeping shareholders informed of what is happening within their company.

– Making sure that the company’s decisions are in the best interest of its shareholders;

– Managing day to day operations;

– Managing the company’s business direction;

– Ensuring that the company can stay within its budget; and, 

– Keeping shareholders informed of what is happening within their company. 

Difference Between Being An Executive Chairman And Being The CEO

The difference between being an executive chairman and being the CEO is one of the most significant in the C-suite. CEOs are responsible for making all day-to-day decisions, while executive chairmen are generally not involved in day-to-day operations. Of course, there are many companies where the CEO also acts as an executive chairman, but few do it full time. 

To illustrate this difference, here are a few examples of how each role differs from the other.

The executive chairman of Freddie Mac, Donald Layton is not involved in the day-to-day operations of the company but does lead its strategic planning and development. He also is a member of Freddie’s board and is responsible for nominating and evaluating director candidates.

Freddie’s Chief Executive Officer (CEO), David Moffett handles all day-to-day duties including running the business, managing risk management, and overseeing financial performance.

David A. Brandon is the executive chairman and former CEO of Domino’s Pizza Inc.

Conclusion

An Executive Chairman is a person who has been appointed to lead the executive team of a company in addition to operating its board. They are one of the most powerful positions in an organization, along with the CEO. The position often brings with it significant responsibilities and authority, but also various benefits due to their control over important areas within their company or organization. The CEO is responsible for creating new businesses, setting business objectives, and meeting business goals.

Frequently Asked Questions-
  1. Who is an Executive Chairman?

The title of Executive Chairman is a powerful one, with the exact meaning of the role varying greatly from company to company. In some cases, it is a synonym for an Executive Director or non-Executive Chairman, a title normally reserved for those who have retired from executive positions but still retain strong links to the organization. Executive chairmen are typically referred to by the shorthand of “Chairman” or “Chief.”

  1. What are the key skills of an Executive Chairman?

The key skills of an Executive Chairman are-

  • Strong business acumen
  • Effective interpersonal and communication skills
  • Ability to think strategically and tactically and assess risks, make decisions and implement plans effectively
  • Development of corporate culture 
  • Leading and steering the company
  1. What does a CEO do?

A CEO oversees everything in a company: operations, finance, hiring, and firing decisions, major purchases, and making sure that all employees are happy. If the managers of these departments are not doing their jobs well, it is up to the CEO to implement changes. 

CEO Vs Executive Chairman – Know More

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