CEO, President and Chairman

new face

Member
SPANISH
Good morning,
could you please help me explain the difference between these three words in the context of a business class? in a textbook it says "he´s the CEO and chairman of Iberdrola" Answer true or false
He´s the president of iberdrola. False
thank you
kind regrds
 
  • Keith Bradford

    Senior Member
    English (Midlands UK)
    It depends whether you're talking American or British English.

    British:

    A typical company has a Board of Directors.
    The Board has a chairman.
    The Board employs a Managing Director.
    If it wishes, the Board may actually employ the Chairman as MD; he is then Chairman and managing director.

    American:

    A typical company has a Board of Directors.
    The Board has a President.
    The Board employs a Chief Executive Officer.
    If it wishes, the Board may actually employ the President as CEO; he is then President and Chief Executive Officer.

    There are many different types of company with many variations on these structures.
    Non-commercial organisations will use CEO rather than MD.
     

    Egmont

    Senior Member
    English - U.S.
    ...
    American
    :

    A typical company has a Board of Directors.
    The Board has a President.
    The Board employs a Chief Executive Officer.
    If it wishes, the Board may actually employ the President as CEO; he is then President and Chief Executive Officer.

    There are many different types of company with many variations on these structures.
    Non-commercial organisations will use CEO rather than MD.
    The description of British organizations may be correct, but this description of U.S. organizations is not. The correct version is:

    A typical corporation (one type of company; its exact definition is not the subject of this thread) has a Board of Directors.

    The Board has a chairman or chairwoman (not a president).

    The board employs a president. In small corporations, the chair of the board and the president are often the same person. This is less common in large companies.

    The board may, optionally, designate a person as the Chief Executive Officer. That means this person has the major responsibility for directing the company. The purpose of doing this is to clarify who's really in charge. The CEO may be the president, may be the chair of the board, or may be a different person entirely (though this last option is unusual). A chair who is also the CEO has a major role in managing the company; a chair who is not also the CEO usually has little responsibility besides running meetings of the board of directors. In the case of the quoted sentence, the board decided that its chairman would be the CEO. He may also be the president. We don't know, though if the sentence didn't include this title, he was probably not.
     
    < Previous | Next >
    Top