Founder vs CEO Responsibilities
A founder launches a business. The CEO manages operations to scale the company. The board hires and fires the CEO. The chairman leads the board. Though the chairman oversees the CEO, they often co-lead the company.
CEO vs Owner Authority
The chairman technically has more authority than the CEO. But the CEO holds the top role. Executives report to the CEO. The status “founder” denotes who created the business. The CEO is the highest-ranking employee. For larger businesses, the CEO is highest-level. Small businesses are run by owners.
Board’s Power in Management
The investors have power over the CEO and directors. A CEO makes decisions and communicates with the board. Though some roles may be higher than CEO, CEO remains top executive.
The board can remove a founder-CEO by controlling the board. This allows firing a founder-owner. Founders often end up with under 50 percent ownership. This leaves them vulnerable. The board votes to fire founders or CEOs.