The individuals or groups above the CEO depend on the organization's structure, primarily whether it's a public or private entity.
Here's a breakdown:
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For Public Companies: The board of directors are above the CEO.
- The board of directors is elected by shareholders to represent their interests.
- The board's responsibilities include:
- Overseeing the CEO's performance
- Setting strategic direction for the company
- Ensuring good governance
- Protecting shareholder value.
- The Chairman of the Board often plays a leading role, sometimes bridging the gap between the board and the CEO but ultimately holds authority over the CEO.
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For Private Companies: Typically, the owners or board members are above the CEO.
- In smaller, privately held companies, the owner(s) often have direct authority and make key decisions.
- In larger private companies, a board of directors, similar to that of a public company, might be in place. This board is appointed by the owners.
- The owners often serve on the board, and the board has ultimate control over the CEO.
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Specific Roles That Can Be Above the CEO:
- Chairman of the Board: As mentioned above, this role has significant power, particularly in setting the agenda and guiding the board's decisions.
- President: In some organizational structures, particularly larger ones, the President might have authority over the CEO, especially if the CEO is focused on a specific area (e.g., technology). However, this is less common.
- Vice President: While VPs usually report to the CEO, this answer considers edge cases. In extremely rare situations, especially during transitions or with specific hierarchical setups, a powerful VP might temporarily have more influence. However, this is not the norm.
In summary, the board of directors (in public companies) or the owners/board members (in private companies) are generally the highest authority above the CEO.
