CEO vs Owner - Know The Difference

Company Registration

CEO vs Owner - Know The Difference

Registrationwala

For any company, both the owner and CEO are extremely important individuals. Many times, a CEO gets mistaken for being the company’s owner. He represents the company but that doesn’t necessarily mean he also owns the company. If you want to know the difference between CEO vs Owner of a company, read this article. It’ll be helpful for you to understand who is a CEO, who is a company’s owner and how these two individuals are different from each other. 

Who is the CEO of a Company?

The full form of CEO is Chief Executive Officer. The high-ranking employee in a company is the CEO. He is tasked with making major decisions for the company, managing the business operations and resources. He acts as the point of communication between the board of directors and business operations. 

 

The role of CEO is extremely important for shaping the company’s direction and ensuring corporate success. The CEO is accountable for the company’s performance and outcomes. He is also responsible for ensuring compliance with all the legal and regulatory requirements.

 

Want to to become a CEO ? Learn How You Can Become a CEO of a Company

Who is the Owner of a Company?

The owner of a company is the company’s boss. He owns the company and he’s the one who pays all the employees. A company’s owner may also be called its shareholder. He has the exclusive ownership of his company. 

 

The company’s owner has financial interest in his company and expects a return on his investment. It is possible for the company’s owner to also be the CEO but it isn’t necessary.

 

Now, let’s find out how the CEO and Owner of a company are different from each other.

CEO vs Owner of a Company

The table below shows the difference between CEO vs Owner of a company. By going through this table, you will be able to understand how CEO and Owner differ from each other.

Parameters

CEO

Owner

Definition

Highest Ranking Executive, responsible for managing the overall operations of the company.

Individual that legally owns the company.

Primary Role

Looking after the day-to-day operations, setting strategic goals and making high-level decisions.

Providing capital and making major strategic decisions for ensuring their company’s success.

Authority

Authority to make decisions regarding the company’s operations but generally required to report to the board of directors.

Ultimate authority over company’s decision-making.

Position

High-ranking individual of the company. He can be hired or fired by the board of the company.

Owner is the company’s boss/employer. Position is inherent by ownership.

Compensation

Salary, bonuses and incentives.

Increase in company’s value and shares, and dividends

Tenure

Long-term. However, it can vary depending on their performance.

As long as they have the ownership.

Decision-Making

Company’s operations and strategy implementation are the director’s focus.

Focused on high-level decisions for the company such as mergers, acquisitions or selling the company.

Example

Google CEO: Sundar Pichai

Amazon Owner/Founder: Jeff Bezos

Conclusion

We explained to you all the major differences between a CEO vs owner of a company. While the owner is a shareholder of the company, the CEO is the highest ranking executive of the company. Both of these roles are important to understand, especially if you are planning to form a company of your own. If you need professional assistance for company registration, connect with Registrationwala company registration consultants.

 

 

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