Chairman

The chairman is the highest office of an organized group such as a board, committee, or deliberative assembly. The person holding the office is typically elected or appointed by the members of the group. The chairman presides over meetings of the assembled group and conducts its business in an orderly fashion. When the group is not in session, the officer's duties often include acting as its head, its representative to the outside world and its spokesperson.

Terminology

A vice-chairman, subordinate to the chairman, is sometimes chosen to assist the chairman and to serve as chairman in the absence of the chairman, or when a motion involving the chairman is being discussed. The genuine etymology of the word is from "chair" (a seat or office of authority) and "man", a person.

Corporate governance

In public companies, the role of the chairman of the board is distinct from that of the company's CEO or managing director. This point has more recently been brought into focus after corporate governance shortcomings were observed in companies where the two roles are combined. It is believed that the separation of functions within the board of directors or in the structure of the supervisory board and management board would facilitate control over the workings of the company and increase the accountability of the CEO or chairman of the management board.

In an attempt to inject transparency into the relationship between executive management and the board of directors as well as between management and the market or shareholders, the UK Cadbury Report was published in 1992. Its recommendations have been adopted to a greater or lesser extent by countries within the European Union and the United States, as well as by the World Bank.

Chairman of the Board types

Non-executive

Executive

See also

Notes

References

Category:Management occupations Category:Parliamentary procedure Category:Political neologisms