20+ Differences between a CEO and a Chairman  (Explained)

CEO and Chairman are two different job positions that many people desire to have. We all know how important a CEO and a Chairman are to an organization and its success. But what most of us do not know is the difference between a CEO and a Chairman.

The primary difference between a CEO and a Chairman is that the former is an employee working for the organization at the highest job position, whereas the latter is the head of the board of directors of an organization. 

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Key differences

CEO

1. It is an initialism for a Chief Executive Officer. It can be best defined as a person working in a job position that is the highest-ranking job in any organization and comes under the category of top-level management. These people are responsible for the smooth running of the organization as a whole. 
2. People working in these job positions can be considered the head of the company or the head of executives. 
3. People working in these job positions have every employee working in the organization as their subordinate since these people work at the highest-ranking job. These people do not have any superiors as they do not have anyone else working at an upper job position than them. However, they do have to report either to the board of directors or the owner or both. 
4. The notable feature of people working in this job position is that these individuals have to take care of the organization as a whole; thus, these people have to take an active part in the routine activities of the concerned organization. 
5. In comparison to the authority, control, and power levels of a Chairman, people working at these job positions typically have lesser powers, authority, and control over the organization as the board of directors and Chairman lie above a CEO. 

Chairman

1. It can be best described as a board of directors member who has been chosen as the head of the board of directors and whose primary responsibility is to represent the board of directors of an organization. Just like a CEO, this board of directors also forms part of the top-level management of any organization. 
2. People who work in this job position are considered to be the head of the board of directors of an organization. 
3. Everyone working in the organization, including the CEO, is their subordinate, and there is no one working above these individuals. However, people working in this job position may or may not have to report to anyone, such as the owners of the concerned organization. It more or less depends and varies from organization to organization. 
4. People working in this job position may or may not be involved with the organization regularly. Most of the Chairman does not actively take part in the company’s routine activities, but it may vary from company to company and person to person. 
5. In comparison to the authority, power, and control levels of a CEO, people working in this job position tend to have more authority, power, and control over the organization as these people are considered above an organization’s CEO. 

Comparison Between A Ceo And A Chairman

Parameter	CEO	Chairman
Meaning	It is an acronym for Chief Executive Officer. It refers to an individual working at a job position that happens to be the highest-ranking job in any organization. People working in this job position form a part of top-level management and are responsible for vital decision-making processes of the organization.	It refers to a member of the board of directors of an organization who is chosen as the head of the board of directors and is responsible for representing the whole board on his behalf. People in this position also come under top-level management and have the highest authority over the organization.
Head of	These individuals are considered the head of the whole organization. They are expected to look after the organization as a whole and represent the organization’s best interest to the board of directors and owner of the concerned organization.	These individuals are considered the head of the board of directors and are expected to make well-planned decisions in the organization’s best interests.
Hierarchy	Keeping in mind the job position hierarchy of all the employees working in the organization, these individuals typically come at the top or at number 1. However, considering the board of directors or the Chairman of the organization, then these individuals come in second place in the job position hierarchy of the concerned organization.	These people always come at the top of the job position hierarchy of any organization as these people are considered superior to everyone, including the CEO (who works at the highest-ranking job in any organization).
Appointed by	These people are generally appointed either by the Chairman or the whole board of directors or the shareholders, or the owner of the concerned organization. Afterward, these people become responsible for appointing other important job positions such as COO, CMO, CFO, etc.	These people are usually appointed either by the votes of shareholders or the owner or the votes of board members of the concerned organization. Afterward, these people have to be responsible for appointing people to the major position of the CEO if it is unfilled.
Focuses on	These people focus on the implementation or execution of the stated organizational goals, policies, strategies, tasks, etc. These people are also responsible for properly fulfilling organizational goals and objectives.	These people focus on planning for relevant things for the betterment of the organization, along with framing the organizational goals, objectives, strategies, rules, regulations, etc.
Accountable to	These people are accountable to and have to report all the relevant matters to the board of directors or chairman of the concerned organization as these people are employees working for the organization and not the organization’s owners.	These people are accountable to and have to report all the relevant information to the shareholders, or the owners of the organization, as the owner’s organization will have all the transparency related to the organizational affairs.
Responsibilities	The primary responsibilities of these people are to take care of the organization’s overall functioning. Moreover, these people are associated with implementing long-run plans set up by the owners for the betterment of the organization, taking vital business decisions for the organization, developing various strategies for the organization, collaborating with other business partners, ensuring that there is an achievement of the organizational goals, etc.	The primary responsibilities of these people include framing the overall goals for the betterment of the organization, delegating tasks and responsibilities, checking weekly, monthly and annual reports, giving feedback on the business decisions made by the CEO, ensuring there is an achievement of the organizational goals, recruiting major job positions such as CEO, COO, CMO, etc., giving ideas on improving and expanding the business, etc.
Hiring and firing	These people have the power to hire and fire anyone in their organization. However, they do not have any power or say in hiring or firing the Chairman of an organization.	These people have the power to hire and fire anyone in the organization, including their organization’s CEO.
Control and authority	These people are associated with a lower degree of control and authority over the entire organization compared to the degree of authority and power of the Chairman as these people work at the highest ranking job but also have a board of directors and owner as superior to them.	These people are associated with a higher degree of control and authority over the entire organization compared to the degree of authority and control of the CEO as these people are superior to everyone working in the organization, including the CEO.
Involvement in daily operations	These people have better involvement in an organization’s daily operations than a Chairman, as these people are responsible for the organization’s overall functioning.	These people have a lower degree of involvement in the daily operations of an organization in comparison to the CEO; however, in many cases, it also varies from person to person and organization to organization.

Major Differences Between A Ceo and A Chairman

Who exactly is a CEO? 

It is an acronym for Chief Executive Officer which refers to an individual working at the highest job position in any organization. These individuals form part of top-level management and are appointed by the board of directors and Owner of the organization.

The significant responsibility of these individuals is to take care of the organization in every aspect and maintain overall good health of the same. These people do not have any superiors working at an upper job position than them, and everyone else working in the organization happens to be their subordinates. 

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Key characteristics of a CEO

1. It is an initialism for a Chief Executive Officer. 
2. It refers to someone working in the highest position in an organization. People who work in this job position come at the top of the job position hierarchy and form a part of top-level management. Since these people work at the highest job position, thus people are also referred to as the head of the company. 
3. The primary responsibility of these executives is to look after the organization in every aspect and ensure the smooth functioning of the entire organization. Other responsibilities of these individuals include making vital business decisions for the company, framing long-term plans for the company, collaborating with various other business firms, ensuring the plans are carried out as planned, and developing strategies and tactics to ensure there is profit maximization with no wastage of resources, report to the board of directors, etc. 
4. Since these people work at the highest job position, everyone else working in the organization becomes their subordinate, and there is not anyone working at an upper job position than them; thus, no superior. 
5. However, it should be remembered that even if these people do not have superior work above them, it does not mean they do not have to report to anyone. These people are liable to report everything to the board of directors and Owner as well. 

Who exactly is a Chairman? 

It refers to a member of the board of directors of an organization who is chosen as the head of the board of directors and represents the board of directors as a whole. People working in this position in any organization come under the category of top-level management.

They are typically appointed by either the shareholders or the Owner of the concerned organization. The primary responsibility of these individuals is to take care of the organization’s profitability and growth along with its stability. These people are considered superior to everyone in the organization, including the CEO. 

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Key characteristics of a Chairman

1. It refers to a member of the board of directors of an organization who has been chosen as the head of the board of directors by either the shareholders or the Owner of the concerned organization. These people also come under the category of top-level management and are simply known as the head of the board of directors and represent the board as a whole. 
2. The primary responsibility of these individuals is to look after the organization’s growth, stability, and profitability. Other responsibilities of these individuals include focusing on improving their business, defining the vision and mission of the organization, delegating tasks and responsibilities to the CEO, defining the short and long-term goals for the organization, keeping an eye on the monthly and annual reports of the business, etc. 
3. Since these people are known as the head of the board of directors and the board of directors is considered as an upper-level position than the CEO; thus, everyone working in the organization, including the CEO, becomes their subordinate, and they do not have anyone as their subordinate.
4. It should be remembered that just because these people do not have anyone as their superior, it does not mean that these individuals do not have to report anything to anyone. These individuals are expected to report all the relevant information to their organization’s shareholders or Owners. However, it may vary from organization to organization. 

The Contrast Between A Ceo and A Chairman

Meaning

• CEO – It is an initialism for Chief Executive Officer and can be best defined as an individual working at a job position that happens to be the highest-ranking job in any organization as well as forming part of top-level management. 

• Chairman – It can be best defined as an individual working as a member of the board of directors of an organization who happens to be chosen as the head of the concerned board of directors either by the vote of shareholders or by the Owner of the concerned organization. 

Head of

• CEO – These people are considered the head of the whole company or organization and are known to represent the whole organization and its best interest to the board of directors and shareholders or Owner of the concerned organization. 

• Chairman – These people are considered the head of the whole board of directors and have to represent the whole board on their behalf and represent its and the company’s interests to the shareholders or owners of the organization. 

Hierarchy

• CEO – Since these people work at the highest ranking job in an organization, these individuals come at number 1 in the job position hierarchy in comparison to the job position of every other employee working in the organization. However, comparing the CEO and board of directors hierarchy, these individuals come at number 2. 

• Chairman – These people are linked to the top of the job position hierarchy compared to the position of everyone else in the organization, including the CEO. However, in case shareholders or owners are present in the organization, then these individuals come in the second position. 

Appointed by

• CEO – These people are typically appointed either by the shareholders/owners or the board of directors or both. Once appointed, they are responsible for appointing other major positions such as COO, CMO, etc. 

• Chairman – These people are appointed by the Owner, the votes of shareholders, or the votes of the other board members of the concerned organization. After being appointed, these people are also responsible for appointing the CEO of the organization. 

Focuses on

• CEO – These people primarily focus on the implementation of plans, strategies, policies, and objectives formed by the board of directors and Owner or shareholders of the organization. These individuals then delegate the tasks and responsibilities and ensure all the stated objectives are fulfilled in the organization. 

• Chairman – These people primarily focus on framing the organizational goals, objectives, strategies, and policies to lead the organization toward the path of success. These people are typically responsible for the planning part of the organization and delegating the execution part to the CEO of the concerned organization. 

Accountable to

• CEO – Just because these people work at the highest ranking jobs, it does not mean that these people do not have to report anything to anyone. These people are accountable to and have to report all the relevant matters to the board of directors and Owner or shareholders of the concerned organization.

• Chairman – Even though these people are considered superior to everyone, including the CEO of the company, still these people are accountable to and have to report all the relevant matters to the Owner or shareholders of the company. However, it may vary from company to company. 

Responsibilities

• CEO – The primary responsibilities of these people are to manage and administer the whole organization, take care of every field of the organization, and delegate relevant tasks and responsibilities.
  Moreover, these people are also associated with implementing long-run plans set up by the owners for the betterment of the organization, taking vital business decisions for the organization, developing various strategies for the organization, collaborating with other business partners, ensuring that there is an achievement of the organizational goals, reporting relevant matters to the board of directors, and owners, etc. 

• Chairman – The primary responsibilities of these people include framing the overall goals for the betterment of the organization, delegating tasks and responsibilities, checking weekly, monthly and annual reports, giving feedback on the business decisions made by the CEO, ensuring there is an achievement of the organizational goals, recruiting major job positions such as CEO, COO, CMO, etc., giving ideas on improving and expanding the business, etc. 

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Responsibilities of A Ceo and A Chairman

CEO

• Implement the plans and strategies made by the board of directors and Owner.
• Do the long-run planning for the organization as per various departments. 
• Making vital business decisions for the organization.
• Framing plans and strategies.
• Expansion of the organization.
• Partnering with businessmen and business organizations.
• Frame tactics to ensure there is profit maximization with no wastage of resources.
• Report relevant information to the board of directors.
• Ensuring the organizational goals are met, etc. 
• Take care of the daily operations and administration of the organization.

Chairman

• Recruiting major job positions such as the board of directors, CEO, COO, CMO, etc. 
• Define short-run as well as long-run plans for the company. 
• Framing organizational goals. 
• Checking weekly, monthly and annual reports of the organization. 
• Suggesting improvements for the entire organization. 
• Holding relevant people such as the CEO accountable, etc.

Hiring and firing

• CEO – These people can hire and fire anyone in the organization; however, these people do not have any power to fire the company’s chairman. 

• Chairman – These people can hire and fire anyone in the organization, including the CEO of the company. 

Control and authority

• CEO – These people exercise control and authority over the whole organization but can not exercise any power and control over the board of directors or the organization’s chairman. Thus, their degree of authority and power happens to be lower than the degree of authority and control of the Chairman. 

• Chairman – Just like a CEO, these people also exercise control and authority over the whole organization, including the company’s CEO. Thus, it can be said that these people have a higher degree of control and authority over the organization in comparison to the authority and control of the CEO. 

Involvement in Daily Operations

• CEO – These people happen to be more involved in the daily operations of an organization in comparison to the Chairman, as these people have to take care of the organization from every angle and ensure the organization’s growth. 

• Chairman – These people happen to be less involved in the daily operations of an organization as these people are more focused on the planning part. However, it varies from person to person and organization to organization. 

CONCLUSION

A CEO and a Chairman are a part of top-level management. People often get confused when they hear CEO and Chairman because of many similarities.
The major difference between a CEO and a Chairman is that the former is known as the head of the company and is subordinate to the Chairman, while the latter is known as the head of board members and is superior to the CEO. 

FREQUENTLY ASKED QUESTIONS (FAQs)

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