Chairman vs. Board Member: What Are the Differences?

The board of directors for a company is responsible for making high-level decisions about the organization. Two common roles on the board are the chairman and the board member. Both of these positions are important for the success of the company, but they have different responsibilities. In this article, we compare the job titles of chairman and board member, and we discuss the key differences between the two.

What is a Chairman?

The Chairman of a company is the executive who presides over the board of directors. The Chairman is responsible for ensuring that the board of directors operates efficiently and effectively. He or she sets the agenda for board meetings, presides over those meetings, and communicates the board’s decisions to the company’s management. The Chairman also represents the board of directors to the company’s shareholders, employees, and other stakeholders. He or she is responsible for building and maintaining relationships with these groups on behalf of the board.

What is a Board Member?

A Board Member is a member of a governing board, typically of a corporation or non-profit organization. Board Members are typically elected or appointed to their position and are responsible for making decisions that will help guide and shape the organization. Board Members typically have a fiduciary responsibility to the organization and its shareholders or members. This means they are required to act in the best interest of the organization and not in their own personal interests. Board Members typically receive compensation for their service, although this compensation may be in the form of stock options or other benefits rather than cash.

Chairman vs. Board Member

Here are the main differences between a chairman and a board member.

Job Duties

A board member’s job duties can vary based on the size and needs of their particular board. For example, small boards may only have two or three members, which means each member has several responsibilities. Larger boards typically have fewer responsibilities for each member because there are more people serving on the board.

Chairmen typically have different daily tasks than other board members. As the leader of the board, they’re responsible for leading meetings, making sure the board completes its goals and communicating with the CEO or president of the company. They also might be in charge of hiring and firing employees.

Job Requirements

The requirements for becoming a chairman or board member vary depending on the organization. Some organizations require their chairmen and board members to have a certain amount of experience in leadership roles, while others may prefer candidates with a background in business administration or a related field. Additionally, some organizations may require their chairmen and board members to be certified through a professional organization, such as the National Association of Corporate Directors (NACD).

Work Environment

Board members typically work in an office setting, but they may travel to attend meetings and events. They also spend time working with other board members to discuss company goals and objectives.

Chairmen often work in a professional environment as well, but they may have more responsibilities outside of the office than board members do. For example, they may need to meet with clients or customers to discuss business needs.

Skills

Both chairmen and board members use interpersonal skills to interact with other members of their organization, as well as outside parties like shareholders, clients and vendors. They also need to be able to effectively communicate their vision for the company and make persuasive arguments to convince others to support their initiatives.

Organizational skills are important for both chairmen and board members, as they often have to juggle multiple tasks and priorities at one time. They may also need to delegate tasks to other members of their team and follow up to ensure that those tasks are completed in a timely and efficient manner.

Chairmen typically have more authority than board members and are responsible for setting the agenda for board meetings and ensuring that the meeting runs smoothly. Board members provide input and feedback on various topics but do not have the same level of responsibility as the chairman.

Salary

The average salary for a chairman is $193,490 per year, while the average salary for a board member is $98,200 per year. The average salary for a chairman may vary depending on the size of the company, the industry in which the company operates and the level of experience the chairman has.