Who is CEO?? Who is board of directors?

Question

I am doing a dissertation on "The corporate governance effect on the firm performance". And there are a part i have to calculate the total size of board of directors should CEO and the Audit committee be counted as a member of directors???

Who is CEO? Do they care about shareholder interest or Chairman interest? I am new to this things...help pls....

Answer 1

chief executive officer (CEO)

Definition

Top executive responsible for a firm's overall operations and performance. He or she is the leader of the firm, serves as the main link between the board of directors (the board) and the firm's various parts or levels, and is held solely responsible for the firm's success or failure. One of the major duties of a CEO is to maintain and implement corporate policy, as established by the board. Also called President or managing director, he or she may also be the chairman (or chairperson) of the board.

board of directors

Definition

Governing body (called the board) of an incorporated firm. Its members (directors) are elected normally by the subscribers (stockholders) of the firm (generally at an annual general meeting or AGM) to govern the firm and look after the subscribers' interests. The board has the ultimate decision-making authority and, in general, is empowered to (1) set the company's policy, objectives, and overall direction, (2) adopt bylaws, (3) name members of the advisory, executive, finance, and other committees, (4) hire, monitor, evaluate, and fire the managing director and senior executives, (5) determine and pay the dividend, and (6) issue additional shares. Though all its members might not be engaged in the company's day-to-day operations, the entire board is held liable (under the doctrine of collective responsibility) for the consequences of the firm's policies, actions, and failures to act. Members of the board usually include senior-most executives (called 'inside directors' or 'executive directors') as well as experts or respected persons chosen from the wider community (called 'outside directors' or 'non-executive directors'). See also corporate governance.

Answer 2

You are new to this and have chosen this as a dissertation topic?  Well OK.  Lookit, here's the deal.  Shareholders elect directors.  Directors appoint officers, one of whom is the CEO.  Either directors or officers may be shareholders but do not have to be.  In fact, most companies prefer "outside"

directors; i.e., non-shareholders.