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The Board and the CEO Relationship - Better Boards Australasia


The relationships between all stakeholders are essential to the overall health and wellbeing of an organisation. However, the relationship between the Chief Executive Officer (CEO) and the Board of Directors (Board) is the most crucial, and the state of this relationship has potentially the greatest influence on organisational success.



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For this relationship to work well, it must be one of negotiation, consideration and understanding of the role and perspective of the other. There must also be a recognition that the CEO and the Board play separate and distinguishable roles, but must work together in order to achieve organisational goals.

Role clarity is essential to ensuring a productive CEO/Board relationship is founded. The primary role of the Board is to govern, to control managerial opportunism and to ensure that CEOs carry out their managerial functions and duties in the best interests of Members. The Board is one of a series of stakeholders, which the CEO must serve effectively. An important function of the Board is to choose the CEO, and to assist the CEO in selecting the management team. Collectively, the Board remains the CEO’s employer, and the role of the CEO is one primarily of management and administration. The CEO is responsible, within parameters established by the Board, for determining and overseeing the execution of the Board’s directions and policies to ensure desirable outcomes.