Question

Scholars, Let's discuss the differing roles of company officers, like the CEO and CFO, versus the roles of the Board of Directors.

What is the specific role of each?

Please share some of your thoughts and findings with us. It would be ideal if you could select any public company, perhaps your own employer if they're public, and do some research about who serves as officers or on their board of directors and their own professional backgrounds.

Answer 1

Role of CEO/CFO and Board of Directors

I am sharing my practical experience of public company in replying to this answer.

Role of CFO - Chief Financial officer is the one of most senior executive level designation in any company. CFO is responsible for financial planning of company. Cost benefit analysis, liquidity, cash flow, financial weaknesses and strenghts analysis and other major financial analytical work is the responsibility of CFO.

From taking financial decision to other major capital project launch, CFO analyses the feasibility of project from profit point of view.

CFO reports to CEO and works with other senior members of finance team of company for the growth of company and is responsible for timely preparation of financial statements of company.

Role of CEO - Chief Executive officer is the highest level individual in company as per designation. He is responsible for taking top level managerial decisions and for overall growth of company.

CEO is responsible for adding value to shareholders fund and increasing the business by communicating regularly with government, employees, public and government.

CEO is responsible for achieving short term and long term goals and also for setting out vision and mission of company

CEO directly reports to board of directors for the performance of the company.

Role of board of directors - Board of company consist of directors, executive directors. They are appointed by shareholders, government, financial institutions.

Board in any company is the highest level decision making committee and is responsible for running the company.

Board appoints, replace or can fire the CEO. Board reviews the performance of CEO. Board outlines the duties of CEO and is responsible for appraisal of CEaoand review the initiatives taken by CEO.

Board establishes the strategic guidelines and framework and directly communicates to the key stakeholders at AGM. Board define the organisational structure and analysis the performance of organisation as a whole and review the strategies on regular basis.

Any decision of board is taken by conducting a board meeting.

This are the roles of CFO, CEO and board of directors.