Would the owner of a business be the CEO of that business?

Question

is the owner always necessarily the CEO? if not, is it possible for the owner to hire someone to be the ceo. and what positions are within a business? for example CEO>managers>supervisors>employees

Answer 1

An owner does not have to assume the CEO title.  For a one person shop, for instance, it would be silly to give yourself that title, as most people would laugh at you.

Even with a larger company, a person may own the company, but hire others to manage and run the company.  It is not that unusual that someone may establish a company, run it to a certain level of growth, and then turn the reins over to another person as CEO, while retaining a different title within the firm, such as President.

Most publicly held companies hire CEOs from the open market, while the owners of the company (shareholders) elect the Board of Directors who, in turn, hire the company's officers.

Most shareholders in these corporations have no involvement in the daily operations of the business.

I hope this answers your question.  Good luck!

Answer 2

The CEO is usually a title bestowed by the bylaws of a corporation.

The shareholders are the owners of the corporation.

The shareholders elect a board of directors.

The bylaws are written by the board of directors.

The officers are hired by the board of directors.

The procedure to hire a CEO is determined by the bylaws.

The shareholders approve the actions of the board of directors.

Answer 3

It's not necessarily the CEO. The Board of Directors appoint a CEO to run the company, and the board is either a) the owners, or b) appointed by the owners [shareholders for instance] to run the company. Owning the company does not necessarily mean you run it. Just that you share in its profits.

Yahoo has a CEO, but it is a public company with many owners.

A CEO is a manager, who manages managers, who manage managers, who manage supervisors (managers), who manage employees.

There may be a lot, or only one layer of management in a company depending on how it is structured.