In general, CEO is the acronym for Chief Executive Officer, in Portuguese it means CEO. CEO is considered the highest official of a company.
However, in corporate governance and structure, many permutations can occur, so the roles of CEO and chairman can be different depending on the company.
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The board of directors is elected by the shareholders of a company and is usually composed of both directors internal directors, who are senior executives of the company, and by external directors, who are individuals not employed by the company. company.
The board establishes corporate management policies and decides on major corporate matters. Because the board is responsible for executive functions and the CEO is responsible for integrating company policy into day-to-day operations, the CEO often fills the role of chairman of the board.
Another factor that determines the positions of company executives is the corporate structure. For example, in a corporation with many different businesses (a conglomerate), there might be a CEO who oversees several presidents, each running a different business within the conglomerate and reporting to the same CEO. In a company with subsidiaries, it would be unusual for one person to fill both the CEO and chairman roles.
A company with no subsidiaries might have one person performing both the CEO and chairman roles. In this way, greater communication and contact can be achieved between the board that sets policies and the person in charge who oversees day-to-day operations.
Presidents usually hold the position of chief operating officer (COO). O COO, responsible for day-to-day operations, has vice presidents for different parts of the company who report to him or her. Generally, the board of directors sets the policy, the president executes the policy and reports to the board. Finally, the board informs the shareholders, the ultimate owners.
These are examples of general scenarios. The CEO is not always the chairman of the board and the president is not always the COO. Whatever the arrangement, the ultimate goal of corporate governance is to effectively manage the relationship between owners and decision makers and increase the company's value to shareholders.
