Meet here who is the powerful Chairman.
In the business world, the variables abbreviations, roles and names for high positions. There are some that are most common because they are more present, and there are others that appear from time to time, generating doubts in people mind.
The Chairman has origin of the antiquity, in the time of kings and queens, where there were large gatherings in which there was only one chair and the person sitting in it had the greatest power, in this case the king.
The Chairman may be related to the CEO or the Board, who is an executor of the company with directors, level C, investors. The CEO has an executive role every day in the company, and the president of the board as an investor, appearing only at the board meeting and doing justice to the interests of the owners. Got confused? We draw:
This small organization chart is not a rule, for example, Chairman can be also a CEO at the same time. Imagine that one entrepreneur founded your company, investing in all your money and also commanded your strategy. In that case, it is likely that he is the Chairman and CEO. Now imagine that there is an investor who bought 80% of a company that already owned a CEO. It with another 20% make the board, but being a figure of greater power, represents a final day decision of the board. This figure should be the Chairman, and could also have a CEO with no problem at all.
In a public company it is much more common to hear the word Chairman. In these companies there is a board of directors, based on the interest of the shareholders, led by the famous Chairman. However, there may be a representative of the investors without there being any open capital. In short, a Chairman can even be a CFO or have other functions within the organization. After all, who has never done more than one function at work, isn’t true? Keep in mind that the Chairman is the representative of who owns the money of the investment, whether by public capital or not.