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Chief executive officer

From Academic Kids

For other uses, see Chief Executive (disambiguation)


Contents

CEO and corporate governance

Main article: corporate governance

Although it is possible to have more than one CEO in a company, generally the job is not shared. It is feared that such an arrangement would create confusion within the organization about who is ultimately in charge. All other management reports to the CEO.

The CEO usually reports to, and is a member of, the company's board of directors. The CEO may also be the chairman of the board or the company president in small businesses, but these roles are often separated in larger organizations, to prevent the company from becoming dominated by a single personality, and to prevent a conflict of interest against the owners (the shareholders).

Unlike the chairman, the CEO selects his own team to work with. He/she has the right to hire and fire, which means that he/she has the opportunity to pick a team that will function.

By comparison of CEO with CFO as strategic business partner and statutory duties under SEC and Sarbanes-Oxley Act, both are equal ranking top executive and separate posts. For larger corporations, CEOs and CFOs often hold MBAs or the Juris Doctor (J.D.) degree.

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