The CEO and Chairman are both senior leaders in the business. The truth is, is there any intersection between CEO and Chairman? Can CEO replace Chairman and vice versa?

To answer your questions about these two important titles, HRchannels shares the article Difference between CEO and Chairman. Readers, please follow along and comment on your opinions, views and experiences with the author HRchannels.

Viewing: What is Chairman

1. What is CEO

?CEO or CEO is a senior executive position, recruited by the Board of Directors. Recruiting CEO is the decision of the Chairman and the Board of Directors or promoted from one of the C-suit positions in the enterprise such as CIO – Chief Information Technology Officer, CCO – Chief Operating Officer, CFO – Chief Financial Officer Chief Executive Officer, CMO – Marketing Director or even Deputy General Manager.

Every move of the CEO revolves around the decisions of the Chairman and the Board of Directors, performing management and supervision tasks by the Board of Directors, headed by the Chairman of the Board of Directors.

Specifically, the CEO or Executive Director defines the market, strategically competes with competitors in the market, and strengthens bilateral and multilateral friendship with major partners, investors and customers, building a healthy corporate culture in order to constantly expand the market and the name and stature of the business reach out to the world.

2. What is Chairman

?Chairman is the Chairman of the Board of Directors, represents the shareholders and is the head of the Board of Directors. This title can be changed to Chairwoman if held by a woman.

Other than the title of president President heads a decentralized organization such as government, universities, corporations with many subsidiaries, etc. Chairman heads a council whose members have the same level of authority and responsibility.

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Chairman is known as the founder of the business or the most invested capital in the business. In other words, in terms of executive power, the Chairman always holds the upper hand.

3. What is the difference between CEO and Chairman


3.1. Function

If the CEO strives for the profit and stature of the business, the Chairman is inclined to issue directives to guide the CEO’s thinking and take care of the interests of shareholders. Thus, it can be seen that if the CEO goes against the principles, goals and mission of the Chairman and the Board of Directors, he can be expelled at any time.

If the C-suit leaders in the organization report results and receive instructions from the CEO in the meetings at the beginning of the week, the CEO must also report all growth, loss, loss, and system errors. … with Chairman and Board of Directors.

3.2. Benefits

The CEO also has to run KPI and receive salary like a normal employee and the person who signs the salary and bonus decisions is the Chairman.

So who pays the Chairman’s salary, bonuses and allowances? The answer is the General Meeting of Shareholders and comply with the Enterprise Law.

The CEO’s salary is high due to the revenue and the position of the business in the hearts of consumers, while the Chairman’s salary is high when recruiting the right and successful CEO and serving the needs of shareholders well.

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4. When does the CEO replace the Chairman

?Depending on the size and type of business, you can find CEO and Chairman working together. That means Chairman often exists in large corporations, dedicated to finding the right direction for businesses.

However, in small and medium enterprises, the CEO often concurrently holds the role of the Chairman. That is, the CEO at this time has both set the path for the business boat and is responsible for monitoring the effectiveness of the tasks. This will become a bright spot in the management and operation of the organization because if you are a designer, you will have full control over the choice of materials, the structure of the house, etc.

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In addition, when the CEO assumes the role of Chairman of the Board of Directors, they will reduce the burden of the pressure of an employee, but always maintain the position of the owner.

5. How does the CEO “turn a dragon” into Chairman

?In the past, the CEO and the Chairman often had a close relationship, even according to the “heir to son” system, “the king’s son is still the king”. However, the era of active generation Z citizens is less willing to “bury their youth” in the “village pond”. Therefore, if the Chairman wants to have a successor, he must organize an election by the Board of Directors.

To easily get the trust of the Former Chairman and the votes of the Board of Directors, you need to “know” a few tips:

5.1. Talented people “always have gifts”

People will never “let their hearts down” for a failed CEO. Instead, a CEO always has an excellent track record in governance. Growth charts will demonstrate the correct strategic direction of a wise leader. Although not responsible for the implementation of strategies, certain steps of the business will be clear evidences for the company. successful CEO recruitment strategy of the Chairman and the Board of Shareholders.

5.2. Close to shareholders

The Chairman or Chairman of the Board of Directors is elected by the majority of shareholders and in the process of working is also supported by the shareholders to achieve success. Therefore, Chairman also needs to develop gratitude programs and good treatment policies for shareholders, in order to constantly strengthen their trust and a strong bond with them.

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“Heaven, favorable conditions, human harmony”, if the CEO builds a close relationship with shareholders, his position will be strengthened and supported, from which large and small difficulties are quickly removed. solutions, especially in matters of finance and investments. At this time, success “does not need to be invited”.

5.3. Being talented “hunters”

To be a Chairman, you need to be able to recruit talent – ​​the lifeblood of the organization. The ability to “spotlight” talents with rich work experience and abundant soft skills.

A pot of light soup can add salt and fish sauce, a wrong math problem can be redone, but when making a wrong move, the CEO will have to pay the price with a long slip, using the wrong person will be like putting poison in the office. organization.

5.4. Master of strategic “roundtable”

As a Chairman, you will not only act like a machine. It will take a lot of time to catch up with the trends of the 4.0 era. Progressive thinking and non-stop creativity, flexibility in leadership style, especially foresight helps you visualize the shape and stature of your business in the next 3-5 years.

Above are the differences between CEO and Chairman, the two highest-level positions of the business. Hopefully the above article of HRchannels provides readers with useful insights for the advancement of a powerful future leader for your business.

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If readers have any questions or comments about recruiting CEO or Chairman, please contact HRchannels – the leading prestigious human resource solution company in Vietnam via email or hotline.