Startups Stack Exchange Archive

What is the difference in the role and responsibilities of an appointed CEO vs a founder CEO?

• posted by: Dawny33 on 2016-04-29
• tagged: ceo, designation
• score: 6

Please mention how they differ in the following aspects:

• Power (The amount of power(or more specifically, control) they have on the company)
• Compensation, and who decides it
• Role and responsibilities (Do they differ?)
• Any other differences which I might have missed, and you’d want to add.

If possible, please give real world examples for illustrating the points better.

Answer 9074

• posted by: Gandalf the White on 2016-04-30
• score: 3

By the time a Start Up is good enough to hire someone else as a CEO other than the founder of the company, generally, they are backed by investors and have them on board.

So now they have a board of directors who are responsible to make decisions. A CEO directly becomes a part of the board and he is answerable to them.

The roles and responsibilities of the CEO remain the same it’s just that the appointed lad has less stakes than the founder lad :D

Compensation - Decided by the board (Because he has less stakes in the profits he generally get paid more)

Power - Power based on the role remains the same but his control over the board of directors might not remain the same (This is another issues which cannot be quantified in numbers or percentages)

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