The Corporate Structure

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Every business should meet the shareholders` interests.To achieve this,there has to be an effective leadership structure where roles and authority are defined clearly.To achieve an effective organizational structure,many organizations a two-tier system.On one tier is the board of directors and on the second tier is the executive team.


 It is elected by the shareholders to represent their interests.It`s major role is to set the overall strategic vision of the company as well as hiring the CEO and other senior staff members.

Composition of the board

1. The Chairman

 He is the leader of the board and the entire corporation.He ensures the effectiveness of the board in setting the corporation`s vision.He also represents the company to the public during functions and chairs the board meetings.He also supervises the CEO and acts as his mentor.In most cases,he is not involved in the day-to-day operations of the company.He is an independent director.

2. Executive Directors

 These are people working inside the company and act as members of the executive team.They may be CEOs or other senior executives eg heads of departments.Their role is to ensure the board takes care of the company`s interests.They represent the rest of the employees at the board.They approve decisions made by the board and implement the board`s strategy inside the company.

3. Non-Executive Directors

 These are directors not working inside the company and not involved in the day to day activities.They have no executive powers or functions but inside the board,they have the same legal powers as any other directors-setting the strategic vision.Their main role is to bring their outside perspective and experience to the board.These may be CEOs of other successful companies and retired senior executives.Start-ups with young and inexperienced founders may benefit a lot from these directors since they bring valuable advice to the board.

executive team

 These are individuals working inside the company and their role is to run the day-to-day activities and implementing the board`s strategies.


Chief Executive Officer (CEO)

 He is the leader of the executive team.All members of the staff including the senior executives report to him and he reports to the Chairman of the board.In some companies,the CEO acts as the chairman of the board.This is not recommended as it interferes with the independence of the board.The board is in charge of monitoring the CEO and firing him in case he is ineffective.The CEO being the chairman will hinder this process.The CEO also advices the board and acts as the link between the board and the company.He keeps the board informed on the company progress.

Chief Operating Officer (COO)

He is in charge of the daily activities of the company.His main role is to ensure all departments runs smoothly and they rale well with each other in achieving the company`s goals.He is more hands on than the CEO and reports directly to the CEO.In some companies,he is referred to as the President or Senior Vice President.

Chief Financial Officer (CFO)

He is in charge of the Finance Department and also referred to as VP for Finance in some organizations.He ensures that the company is financially healthy and keeps financial records which he presents to the board of directors during board meetings.He reports to the CEO

Chief Marketing Officer (CMO)/ VP for Marketing

He is in charge of the marketing department whose role is to spread the company`s brand message to its target market.He is in charge of all marketing initiatives eg web development,branding,social media as well as word of mouth marketing.

Other members of the Executive team include director for HR, Legal affairs, Chief Technology Officer among others.The composition of the executive team depends on the size of the company as well as the industry in which the company is operating.


The Board of Directors and the executive team are both independent but they complement each other.They work together with a common goal-to ensure the success of the entire organization.