- There are substantive differences between an executive chair and a board chair. The executive chair has specific management or operating duties, depending on what is been agreed to between the executive chair and the CEO.
- The standard risk in having an executive chair and a board chair is that it is an unstable situation, and it may degenerate into confusion about who does what. Sometimes it works during a transition, or when responsibilities are well defined and understood. In general, it’s not the ideal structure. It should be clear who’s running the company, and that’s the CEO.
- If the executive chair role exists, there needs to be clear delineation of who does what. But that does not substitute communication between the CEO, the executive chair, and the full board.
- Here is an example of what works. The company has some issues with managing its operations and manufacturing systems. The executive chair has skills in that area and steps in. The CEO and the executive chair have agreed that’s exactly how they’re going to divide the responsibility and for how long. It’s generally temporary and short-term (e.g., three months, a year, or two years).
