High Performance Boards, 2nd Edition

CHAPTER 17The Chair–CEO Relationship

The partnership between the chair and CEO is the critical catalyst to ensure that the four pillars interact to promote board effectiveness. A healthy relationship between the two may differ in form depending on the company, its situation, and the personality of the individuals – but the essential preconditions are trust and role clarity. It is vital that both the chair and CEO clearly understand their respective roles, which need to be both distinct and additive. In practice, this means that the chair and CEO do not overlap in the work they do. Rather, each performs a unique function, building upon the efforts of the other, to jointly enhance the quality of the board's work.

The chair and CEO must meet regularly to communicate and review issues, opportunities, and problems. Furthermore, their relationship needs to be one of openness and integrity, and be underlined by a clear division of responsibilities. We've explored the chair's role and responsibilities in the previous chapter. Let's now take a look at the role of the CEO, and what is essential for success in this key executive leadership function

The Role of the CEO

The CEO is the leader of the organisation, managing it within the authorities delegated by the board and implementing the strategy. In most cases, the CEO develops the key content of the strategy process, such as competitive analysis and proposals, and ensures effective co-creation of key strategic recommendations with ...