In the business world, the term “chair” is often used to refer to the person who presides over a company’s board of directors. This individual is responsible for managing the board and overseeing its activities, ensuring that the company is being run in a way that is consistent with its goals and objectives. In this article, we will take a closer look at the role of the chair in business, their responsibilities, and how they differ from the CEO.
What is a Chair in Business?
A chair is an individual who serves as the head of a company’s board of directors. The board of directors is a group of individuals who are elected by the company’s shareholders to oversee the management of the company. The board is responsible for making strategic decisions, setting policies, and overseeing the activities of the company’s executives. The chair is responsible for managing the board and ensuring that it is functioning effectively.
Responsibilities of a Chair
The chair’s responsibilities can vary depending on the specific company and its board structure. However, some common responsibilities include:
- Leading the board of directors: The chair is responsible for leading the board of directors and ensuring that it is operating effectively. This includes setting the agenda for board meetings, ensuring that all board members are prepared for meetings, and managing conflicts between board members.
- Managing the CEO: The chair is responsible for overseeing the company’s CEO and ensuring that they are carrying out the board’s directives. This can involve setting performance goals for the CEO, providing feedback and guidance, and managing the CEO’s compensation.
- Representing the company: The chair often serves as the public face of the company and is responsible for representing the company to shareholders, investors, and other stakeholders. This can involve speaking at public events, meeting with stakeholders, and participating in media interviews.
- Setting the company’s strategic direction: The chair plays a key role in setting the company’s strategic direction. They work with the board to develop long-term plans and ensure that the company is on track to meet its goals.
Chair vs. CEO
While the chair and CEO both play important roles in the management of a company, their responsibilities are different. The CEO is responsible for the day-to-day operations of the company and for implementing the strategic plans developed by the board. The chair, on the other hand, is responsible for overseeing the board and ensuring that it is operating effectively.
In some companies, the roles of the chair and CEO are combined. This is known as a combined CEO/chair model. In this model, the CEO also serves as the chair of the board. While this model can be effective in some cases, it can also create conflicts of interest, as the CEO may prioritize their own interests over those of the company.
Conclusion
The chair plays a critical role in the management of a company. They are responsible for leading the board of directors, managing the CEO, representing the company to stakeholders, and setting the company’s strategic direction. While the responsibilities of the chair can vary depending on the specific company and its board structure, they are always focused on ensuring that the company is being run in a way that is consistent with its goals and objectives. By working closely with the board and the CEO, the chair can help to ensure the long-term success of the company.
