Chief Executive Officer Director Of Private Limited Company

A company can be private limited company or a public limited company. In a private limited company, the company is governed by a board of directors and out of them one of the most important posts is that of the Chief Executive Officer or the CEO. He is the officer with the highest rank in the company and looks after the overall management of the company.

The Chief Executive Officer of a company looks after the total working of the company concerned. He is at the helm of all the action that is taking place within the company, be it relating to the production management, the financial management, the human resources, the marketing of the products etc. all the plans that are made by the company have to be first approved by the CEO before that is put into practice. He deputes people for different functions of the company who report directly to him.

The Chief Executive Officer acts as the president of the executive board of the company which takes care of the everyday business of the company. For the overall business of the company, the shareholders elect another separate board which is headed by the Chairman. It is a general practice that the heads of the two boards are not the same person for purpose of better control of the company. This also makes sure that the authority on the hands of the CEO is not the ultimate.

The reason for both the boards not being presided over by the Chief Executive Officer of the company is because if it is done then there is a chance to have a conflict in the interest of the CEO and the supervisory board and the power is distributed between two people. This also means that the management of the company and the political influence on the company is not the same, which means that the company will be working efficiently in tandem.

Even in the companies that are government held and even charitable institutions in countries like the United Kingdom, the Chief Executive Officer is controlling the activities. The answer directly to the board of directors who are chosen by the people who have their interest vested in the company. In countries like France the post of the CEO is given another name- the President Director General, in Sweden, they are known as Verkställande Director and in Italy; they are called Amministratore Delegato.

The Chief Executive Officer delegates their controlling authority to the following posts- chief financial officer or the CFO for the financial matters, chief operating officer or the COO for the operations, chief marketing officer or the CMO for the marketing functions, and the Human Resource Director for the HR function. These people directly report to the CEO. Corporate executive officer