The Chair and CEO relationship
Assuming you separate the roles of Chair and CEO (as recommended by provision 9 of the UK Corporate Governance Code 2024, and common in charities where the Chair is a volunteer trustee and the CEO is a member of staff), the relationship between the two individuals is crucial to the performance of the organisation, although in smaller companies they are often the same person.
The following matrix outlines the combinations of a strong or weak Chair and CEO:
| Chair | CEO | Outcome |
|---|---|---|
| Strong | Strong | Best outcome, effective day to day and strategic leadership |
| Strong | Weak | Ineffective day to day leadership |
| Weak | Strong | CEO faces little / no scrutiny |
| Weak | Weak | Worst outcome, ineffective day to day and strategic leadership |