A chief executive officer (CEO) leads an organization’s management, directs senior executives, and sets and carries out strategy within authority delegated by the board. The CEO remains accountable to the board; a CFO leads finance, a COO’s remit varies by organization, and a board chair leads the board’s oversight work rather than day-to-day management.
These roles and reporting lines are not identical at every organization. The company’s governing documents and role descriptions determine how authority is delegated and who reports to whom.
What does a CEO do?
The CEO leads the organization as a whole: shaping direction, coordinating senior leaders, overseeing execution, and reporting to the board. The CEO works through the management team and within powers delegated by the board, rather than independently controlling every decision or function.
A published Cameco Corporation CEO position description illustrates the breadth a role can cover. It assigns the CEO responsibility for managing the company’s affairs, recommending strategy, directing execution of the board-adopted plan, monitoring performance, allocating resources, building the executive team, and overseeing areas such as risk, controls, financial reporting, safety, and compliance. This is one company’s description, not a universal checklist.
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CEO vs. CFO, COO, board chair, and board
| Role | Primary scope and work | Accountability and caveat |
|---|---|---|
| CEO | Leads organization-wide management and direction. | Accountable to the board within delegated authority; the precise remit depends on the organization. [C2] |
| CFO | Leads finance, including financial analysis, reporting, budgeting, and monitoring expenditure and costs. | A company code hosted in an SEC filing gives this illustrative description; duties vary by employer. [C4] |
| COO | May lead operations or another operating remit. | Not every organization has a COO, and the title does not establish a universal deputy role or reporting line. Ericsson lists a COO on its Executive Team. [C3] |
| Board chair | Leads the board’s governance and oversight work. | Distinct from managing the organization, even where one person holds both posts. Governance arrangements vary. [C1] |
| Board of directors | Provides governance and oversight, monitors key executives, and oversees succession. | The board’s powers and composition depend on applicable law and organizational documents. [C1] |
CEO vs. CFO: what is the difference?
The CEO’s remit is organization-wide, while the CFO leads the finance function. The CFO provides financial analysis and reporting and helps develop budgets and monitor costs. The CEO considers financial advice alongside operational, people, market, and risk considerations when leading the organization. The exact division of duties depends on the company’s role descriptions and delegated authority. [C2] [C4]
What is the difference between a CEO and a COO?
A CEO leads overall management and is accountable to the board. A COO may lead company-wide operations or a defined operating function, but the title does not mean the person is always the CEO’s deputy or second-in-command. Ericsson, for example, lists a COO on its Executive Team; that example does not establish a universal job description. Check the employer’s own role description to understand a particular COO position. [C2] [C3]
Is the CEO above the board chair?
The CEO and board chair lead different parts of an organization: the CEO leads management, while the chair leads the board’s governance and oversight work. The CEO is therefore not simply “above” the chair in a universal hierarchy. Some organizations combine the posts in one person, while others separate them. The OECD’s 2023 Principles say separation can help balance power, increase accountability, and support independent board decision-making; this is governance guidance, not an identical legal rule for every organization. [C1]
How the board and CEO share oversight and execution
The board oversees management and monitors whether executives act consistently with board-approved strategy and policies. The OECD’s 2023 Principles state: “The board should oversee the performance of key executives and monitor that their actions are consistent with the strategy and policies approved by the board.” [C1]
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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →The CEO leads the business within delegated authority and reports to the board. Cameco’s CEO position description offers a company-specific example: “The CEO shall be directly accountable to the board for all activities of the corporation”. It also says the board appoints the CEO and evaluates the CEO at least annually. These details illustrate one organization’s arrangement rather than a universal rule. [C2]
Board oversight is distinct from daily management. For Canadian federally regulated financial institutions, OSFI’s 2018 guideline says senior management implements board decisions and directs operations within delegated authority. This guidance applies to that sector and jurisdiction, not every organization. [C5]
How to understand a particular executive structure
- Check the organization’s governance documents to see which decisions belong to the board and which authority it delegates to management.
- Read the CEO and functional leaders’ role descriptions to distinguish organization-wide responsibilities from finance, operations, or other specialist duties.
- Look for the stated reporting lines and escalation arrangements; do not infer them from titles alone.
- Identify whether the CEO and board chair roles are separate or combined, and what safeguards support independent oversight.
FAQ
Does every organization have a CEO and a COO?
No. Titles and executive-team structures differ. Some organizations have a COO; others do not, and a COO’s responsibilities depend on the organization. [C3]
Does the CEO make every major decision?
No. The CEO leads management within authority delegated by the board. The board retains its governance and oversight responsibilities, and decision rights vary with the organization’s governing documents and applicable rules. [C1] [C2]
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Can one person be both CEO and board chair?
Some organizations combine the roles, while others separate them. The OECD’s 2023 Principles describe separation as a practice that can support balance of power, accountability, and independent board decision-making. [C1]
Who does the CEO report to?
The CEO is generally accountable to the board, but the details depend on the organization’s governance structure and delegated authority. Cameco’s published position description is one explicit company example. [C2]
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