Key Takeaways

  • The highest position in a company is typically the chairman of the board of directors, who leads governance and oversees corporate strategy.
  • The CEO is the top executive managing day-to-day operations, but remains accountable to the board.
  • Companies may also have a president, vice chair, or founder who hold significant authority depending on the corporate structure.
  • C-level executives (CFO, COO, CTO, etc.) specialize in running divisions but report to the CEO and board.
  • Job titles and authority can vary based on company size, industry, and bylaws, so it’s important to understand both formal structure and practical leadership dynamics.

What is the highest position in a company? The chairman of the board of directors holds the highest position in a company. He or she leads the board and top officers in managing all aspects of the company's business.

Corporate Structure

A typical corporate structure consists of shareholders, officers, and board of directors. Shareholders are not directly involved in the operations of the company. The officers look after the daily operations whereas the directors govern the company to protect the shareholders' interests.

There are two major criteria for including someone in your management team. First, they should have the necessary training and skills required for the job. Second, their track record should support their talents.

You may not have an experienced management team when you start a company. Usually, the team evolves as the company grows. Meanwhile, the team members may have to take up multiple responsibilities to manage the company.

Variations in Corporate Leadership Hierarchy

While most companies follow a traditional hierarchy, leadership titles and the distribution of authority can differ. For example:

  • Chairman or Chairperson of the Board: Often considered the highest role, guiding corporate vision and ensuring accountability of executives.
  • President: In some organizations, the president is distinct from the CEO and manages operations or external relations.
  • Vice Chair: Supports the chairman and may assume responsibilities in their absence.
  • Founder/Owner: In startups or family businesses, the founder may hold ultimate decision-making power even if not serving as CEO or chairman.

Understanding these distinctions helps clarify why the "highest position in a company" is not always the same across industries or jurisdictions.

Board of Directors

The articles of incorporation or company bylaws usually name the first directors of the company. Sometimes, the person forming the company may select the first directors. After the incorporation is complete, shareholders elect the directors in annual meetings.

Typically, the board of directors is the governing body of a company and the board chairman holds the highest authority in a company. They preside over the board meetings and lead the company's business.

In addition to the chairman, the board of directors charts out the business path for the company. The board is legally responsible for the actions of the company and its employees.

Duties and responsibilities of a company's director usually include the following:

  • Acting with due care on behalf of and in the best interests of the company
  • Acting in good faith and with loyalty to the company and its members
  • Participating in board meetings
  • Approving certain actions of the company, such as contracts and agreements, new company policy, purchase and sale of assets, and the election of officers
  • Amending bylaws and articles of incorporation

The size of the board (the number of directors) depends on the size of the company's business. Usually, the company's bylaws or the articles place an upper limit on the total number of directors it can have. A small company can have just one director whereas a large corporation can have even more than 10 directors on its board. From a voting point of view, a company should have an odd number of directors so that it can take clear decisions in cases where the board is divided in opinion.

Relationship Between the Chairman and CEO

The chairman leads the board, while the CEO leads the management team. In some corporations, the roles are combined, making the CEO also the board chairman. In others, they are intentionally separated to prevent too much concentration of power.

Key differences include:

  • Chairman: Focuses on governance, shareholder interests, and long-term vision.
  • CEO: Focuses on strategy execution, growth, and daily operations.

This structure ensures checks and balances. When combined into a single person, decisions may be made faster but risk reduced oversight.

C-Level Executives

C-level executives are usually involved in important business decisions like creating business ideas, setting up the management team, and bringing the resources together in order to successfully run the company. These executives can be from among the shareholders (majority or minority stakeholders) or from the outside. In larger organizational setups, the C-level executives usually head their respective division, such as finance, marketing, or technology.

These corporate officers are generally appointed by the board of directors and are given authority to act on behalf of the company in most business activities. Typical C-level positions include:

  • CEO or Chief Executive Officer: Often a member (usually chairman) of the board. The CEO usually signs the contracts on behalf of the company and reports to the board of directors.
  • COO or Chief Operating Officer: Manages the day-to-day affairs of the company. The COO reports to the CEO.
  • CAO or Chief Administrative Officer: Usually responsible for looking after the company's administrative management.
  • CIO or Chief Information Officer: Establishes and maintains a strategy for protecting company information and data.
  • CFO or Chief Financial Officer: Responsible for company financial matters. The CFO is often called "treasurer" or "controller."
  • CTO or Chief Technology Officer: Mainly manages the company's technology, research, and development process.
  • CMO or Chief Marketing Officer: Manages the company's marketing activities. This is a mid-level position that reports to the CEO.
  • CHRO or Chief Human Resources Officer: Heads the human resources department. This is a mid-level position that reports to the CEO.
  • Company Secretary: Responsible for maintaining the company's records and documents (e.g., minutes of the meetings) and ensuring compliance with legal requirements (e.g., filing annual returns).

In a small company, a single shareholder may serve as the company director and officer.

Other Common Executive Titles

Beyond the well-known C-suite roles, many organizations use additional executive titles to reflect unique functions:

  • President: Sometimes second in command after the CEO, managing operations or specific departments.
  • Vice President (VP): Senior managers who head key departments such as sales, legal, or communications.
  • General Counsel (GC): The top legal officer responsible for compliance and corporate governance.
  • Chief Strategy Officer (CSO): Focuses on long-term growth strategies and market positioning.
  • Chief Risk Officer (CRO): Manages financial, legal, and operational risks.

Titles may vary, but all are designed to support the company’s overall mission and report upward to the CEO or board.

Frequently Asked Questions

  1. Who holds the highest position in a company?
    The chairman of the board is typically the highest position, overseeing governance, while the CEO is the top executive managing daily operations.
  2. Is the CEO higher than the president?
    Yes, in most companies, the CEO outranks the president. However, in some structures, the president may handle operations while the CEO focuses on vision and strategy.
  3. Can the CEO also be the chairman?
    Yes, in some companies, the same person holds both roles. However, many organizations separate them to maintain accountability.
  4. Does a founder outrank the CEO?
    In startups or family businesses, the founder may retain ultimate authority even if a CEO is appointed, especially if they hold majority ownership.
  5. What role does the board of directors play in leadership?
    The board provides oversight, approves major decisions, and ensures the company acts in shareholders’ best interests. The chairman leads this governance body.

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