Chief executive officer

From Wikipedia, the free encyclopedia.

For other uses, see Chief Executive (disambiguation)

A chief executive officer (CEO) or chief executive is the highest-ranking corporate officer or executive officer of a corporation, company, or agency.

In the United States the CEO may also be the chairman of the board or the company president in small businesses, but these roles are often separated in larger organizations, to prevent the company from becoming dominated by a single personality, and to prevent a conflict of interest against the owners (the shareholders).

In the European Union there is a stipulation that the chief executive and the chairman of the board be separate functions. This ensures a distinction between governance and management and allows for clear lines of authority. The aim is to prevent a conflict of interest and too much power being concentrated in the hands of one person.

In rare circumstances an Executive Chairman can be appointed but this is either illegal in many jurisdictions or frowned upon by Regulators.

In the United Kingdom many Charities and Government Agencies are headed by a Chief Executive who is answerable to a Board of Trustees or Board of Directors.