CEO Vs Board Of Directors- Know Responsibilities Of Them

A corporation has a power and authority structure to facilitate its operations. Large corporations have both a Board of Directors and C-level Officers to ensure it achieves the strategic plan. Let us know more detail about ‘CEO Vs Board Of Directors’.

CEO Vs Board Of Directors

CEO Vs Board Of Directors

What is a Board of Directors? They are a group or team of experienced professionals elected or appointed by business owners or shareholders of an organization. They oversee the implementation of a corporate strategy in an organization. Consequently, the Board of Directors (BOD) appoints a Chief Executive Officer (CEO). Who is a CEO? He is a C-suite executive who steers and oversees all organizational activities. Let us review the similarities and differences between these roles.

Similarities between CEO Vs Board Of Directors

They steer the organization in the desired direction. They develop the corporate strategy including, vision, mission, values, and objectives. They attend meetings to deliberate on issues affecting the organization. They help create and maintain an organization’s corporate image. They also monitor and evaluate the periodic performance of the organization. They prepare relevant reports for submission to the business owners and shareholders. They ensure the organization remains viable and profitable.

Differences between CEO Vs Board Of Directors

The CEO is concerned about the staffing of the departments, while the BOD is concerned with the staffing of high-ranking officers and senior managers. The BOD develops the strategy plan, while the CEO oversees the implementation of this strategic plan. He makes sure that teams align with the corporate strategy. The CEO reports to the BOD, which supervises him directly, while the BOD reports to the board chairperson with its checks and balances. The CEO oversees all organizational activities routinely, while the BOD ensures periodic checks on the organization. 

Let us explain each of the roles mentioned under similarities and differences for a better understanding of their nature of work: 

Roles of a CEO

1. Leadership 

He provides guidance and direction for the organization to achieve its goals and objectives. He leads the managers on the course of action to take to maximize the potential in the organization. 

2. Decision Making 

He develops and selects the best possible solution, which will give the organization a strategic advantage in the business environment. He obtains all the available information about an existing situation to assist in selecting the course of action. 

3. Reporting

He develops relevant information and reports to share with the BOD. The reports help the BOD decide on various issues such as revenues and expenditure.

4. Collaboration

He works together with the BOD to ensure the organization is maintaining its strategic plan. He also offers relevant advice relating to a course of action. He attends BOD meetings for planning purposes.

5. Networking 

He creates collaboration with internal and external stakeholders to improve efficiency and effectiveness in the organization. It also helps in acquiring and managing essential resources for the organization. It is a way of getting allies in the business environment that helps preserve the corporate image and position. 

6. Mentorship 

He is a mentor for the managers and employees. He nurtures their skills and advice on the performance of duties. He also establishes the preferred operational methods.

7. Implementation 

He executes the policies and procedures developed by the BOD. He remains supportive of their decisions and prescribed systems. He ensures the breaking down of the corporate strategy into tasks assigned to various teams for completion. He monitors and evaluates the progress of the corporate projects initiated by the team. 

8. Public Relations

He is a mediator and spokesperson for the corporation. He advocates for the employees and protects the overall image of the corporation in the public realm. He also provides relevant information to employees, stakeholders, and the public when the need arises. He explains decisions and courses of action taken by the BOD and himself. 

9. Strategic Management 

He adopts the corporate strategy developed by the BOD and himself. He assists the BOD during the development stages of the strategic plan to own it and sell it to the stakeholders. He helps develop the organization’s vision and mission together with the BOD.

10. Staffing

He works in collaboration with the human resources department. It ensures there is accountability and transparency in the hiring process. He makes sure the HR plan complements the corporate strategy. They secure the best talent for the organization. He assists in vetting potential senior managers during the hiring process. 

Roles of a Board of Directors

1. Policy Making

It develops appropriate policies and procedures for execution by the CEO and his team. It also devises a strategic plan to give the corporation a competitive advantage in the sector and industry. It develops the vision, mission, values, and goals for the organization. It devises ways of achieving the strategic plan in collaboration with the CEO.

2. Corporate Branding

It ensures that the corporate image is positive in society through compliance management and public relations efforts. It conveys the kind of image and behavior its employees should adopt to enhance profitability and performance. It determines the advertising strategies adopted to preserve the corporation’s public image. 

3. Salaries and Remuneration 

It determines the pay structure and scales for the corporation based on the financial reports submitted to them. It also determines the compensation package for the C-level officers. It approves employee benefits and rewards programs for the corporation.

4. Resource Management 

It determines the revenue and expenditure of the corporation. It decides which investment and revenue stream the corporation should pursue. It also approves the expenses the finance team should process. It ensures the checks and balances are in place to avoid bankruptcy and unnecessary debts.

5. Governance

It ensures appropriate structures and systems exist to ensure the smooth running of operations. It ensures that the chain of command adopted remains relevant in the business operations and desired corporate culture. It ensures that there are appropriate reporting systems and patterns for effective communication.

6. Acquisition and Disposal of Assets

It ensures following proper procedures by the procurement process before making approvals. It also makes sure that the procurement team properly disposes of assets. It makes sure the procurement team for accountability and transparency prepares proper documentation.

7. Acquisition and Mergers

It develops and adjusts the organizational structures as per the prevailing circumstances in the business environment. It determines which strategy to implement to preserve the corporate position in the sector and protect its corporate image. It will identify possible partnerships with competitors and buy out smaller corporations to enhance its dominance in the industry.


Now we have learnt ‘CEO Vs Board Of Directors’, The CEO and BOD are interdependent, and they facilitate the smooth flow of operations in a corporation. In most cases, one cannot effectively function in the absence of the other. Their roles are similar, with very few differences. The BOD is senior to the CEO, and he reports to them. They must have a cordial relationship to facilitate the achievement of the strategic plan. 

Frequently Asked Questions 

1. What are some attributes of a Chief Executive Officer?

He is accountable, transparent, confident, confidential, and competent.

2. What are some skills of a Board Member?

He should have communication, oratory, interpersonal, reporting, and leadership skills.

CEO Vs Board Of Directors- Know Responsibilities Of Them

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