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Leslie Budd on... whose role is it anyway?

Updated Thursday 28th October 2010

Leslie Budd takes a look at the often difficult relationship between chair and CEO - how important is it to be clear about the roles?

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Copyright open university


Copyright open university


Leslie Budd

The relationship between chairmen and CEOs of companies is often a difficult one.  Just look at football clubs, the CEOs or managers think they just need three more players to succeed and money grows on trees.  Chairmen, on the other hand, think they know everything about the business.  A good system of corporate governance does distinguish between the roles but recognises the relationship is symbiotic.  A good chairman is out there being an ambassador for the company whilst at the same time acting as a restraining hand on any excesses.  The CEO on the other hand, both privately and publicly, undertakes strategies to drive the business forward.  The bottom line is that if you wish to succeed in business then you need to be clear about the roles of the CEO and the chairman, otherwise relegation may beckon for your company.  That’s my view, you can join the debate with the Open University.






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