Chairperson vs President - Non-profits

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What is a Chairperson?

The role of a board chairperson, often simply referred to as the board chair or chairman, varies depending on the organization and its governance structure. However, some common responsibilities and roles of a board chairperson include:

Leadership and Facilitation: The board chair provides leadership to the board of directors and ensures that board meetings are run efficiently and effectively. They often set the agenda for board meetings and facilitate discussions.

Governance Oversight: The chairperson is responsible for ensuring that the organization follows its bylaws, policies, and applicable laws and regulations. They play a key role in maintaining the integrity of the organization’s governance processes.

Communication: The chairperson is often the primary spokesperson for the board, serving as a bridge between the board and the organization’s management, stakeholders, and the public. They may communicate important decisions and initiatives to the organization’s various stakeholders.

Strategic Planning: Board chairs often play a pivotal role in the development and execution of the organization’s strategic plan. They work closely with other board members and the executive leadership to set strategic goals and direction.

Board Development: The chairperson is typically involved in the recruitment and development of board members. They may help identify potential candidates, assess board performance, and ensure board members are trained and informed about their roles and responsibilities.

Conflict Resolution: In cases of board conflicts or disagreements, the chairperson may act as a mediator and work to find resolutions that benefit the organization as a whole.

Relationship Building: The chairperson often plays a role in building and maintaining relationships with key stakeholders, including donors, partners, and government entities.

Evaluation and Performance Oversight: The chairperson may participate in evaluating the performance of the organization’s executive director or CEO and ensuring that the organization is achieving its mission and goals.

Financial Oversight: While the board as a whole is responsible for financial oversight, the chair may work closely with the treasurer and finance committee to ensure that the organization’s finances are in order.

Advocacy and Fundraising: Depending on the organization’s needs, the chair may be involved in advocacy efforts and fundraising to support the organization’s mission.

It’s important to note that the specific responsibilities of a board chair can vary widely between organizations and can be influenced by the organization’s size, mission, industry, and governance structure. In some organizations, the chair may have a more hands-on role, while in others, they may focus more on leadership and facilitation. Additionally, the chairperson usually works closely with the executive director or CEO, who is responsible for the day-to-day management of the organization.

The role of President with Chairperson

The roles of a president and chairperson on a board of directors or trustees can vary based on the organization’s governance structure and practices. In some organizations, the president and chairperson roles are distinct, while in others, they may be combined into a single position. Here are the typical roles of a president and how they may work with a chairperson:

President’s Role

Leadership: The president is often a key leader on the board and is responsible for representing the board in various capacities.

Board Meetings: The president may preside over board meetings in the absence of the chairperson or when the chairperson chooses not to preside.

Committees: The president may serve on various board committees and provide leadership or support as needed.

Communication: The president may assist the chairperson in communicating with stakeholders, and in some cases, may act as a secondary spokesperson for the board.

Chairperson’s Role

Leadership and Facilitation: The chairperson is typically responsible for providing overall leadership to the board and ensuring effective governance. They often preside over board meetings, set the meeting agenda, and facilitate discussions.

Governance Oversight: The chairperson plays a significant role in ensuring that the organization adheres to its governance processes and bylaws.

Conflict Resolution: In cases of board conflicts or disagreements, the chairperson often takes the lead in finding resolutions.

Strategic Planning: The chairperson is often a central figure in setting the strategic direction of the organization.

The relationship between the president and chairperson can vary depending on the organization. In some cases, they work closely together, with the president providing support to the chairperson in fulfilling their duties. In other organizations, the roles may be more distinct, with the president primarily focusing on specific leadership roles and responsibilities.

It’s important to consult an organization’s bylaws and governance documents to understand the specific roles and responsibilities of the president, chairperson, and other board members, as these roles can be customized to meet the organization’s needs and priorities. The key is to ensure that there is clarity and cooperation among board members to effectively fulfill the organization’s mission and governance responsibilities.

Skills for Board Leaders

While chairpersons and presidents may have overlapping skills, they also have some that help distinguish their roles even further.

Here are some common skills for a chairperson:

  • Ability to lead board meetings: As a chairperson, it’s important to know how to lead board meetings effectively. Using this skill, you can ensure board members address all key topics and confirm that every member gets to share their opinion before making a decision.

  • Knowledge of the business: Chairs require an in-depth knowledge of their company, including familiarity with its culture, people and processes.

  • Communication Skills: As a chairperson, it’s important to have strong communication skills to establish good working relationships with shareholders and other relevant parties. Effective communication also helps chairs provide clarity to the rest of the board.

Here are some common skills for a company president:

  • Communication skills: A president uses their communication skills to develop good relationships with the public and industry leaders.

  • Decision-making skills: Presidents require strong decision-making skills to help them make important decisions for the company’s benefit. To make these decisions, they refer to the views and reports from both the vice president and directors.

  • Financial knowledge: As a president, it’s important to have strong financial knowledge so you can properly analyze budgets and financial reports. This skill also helps you better understand how to implement a company’s goals within reasonable financial limitations.

Election format

While both a chairperson and a president enter their positions via an election, which is unlike how a traditional employee acquires their role, different parties vote for their positions. A chairperson enters their position by receiving votes from shareholders, and the individual can convince shareholders of their competency by persuading them that they have the shareholders’ best interests. Alternatively, a president enters their position by receiving votes from the existing board of directors, which includes the chairperson. A board of directors may deem a president worthy of being a presiding officer based on past work experience and professional successes.

A chairperson maintains their position for a specified term, and shareholders have the chance to reelect them for future leadership if they enjoyed their guidance and decisions. A board of directors can review a CEO’s employment periodically, like every year, to determine if they’re qualified to continue in their position.

Election Format

While both a chairperson and a president enter their positions via an election, which is unlike how a traditional employee acquires their role, different parties vote for their positions. A chairperson enters their position by receiving votes from shareholders, and the individual can convince shareholders of their competency by persuading them that they have the shareholders’ best interests. Alternatively, a president enters their position by receiving votes from the existing board of directors, which includes the chairperson. A board of directors may deem a president worthy of being a presiding officer based on past work experience and professional successes.

A chairperson maintains their position for a specified term, and shareholders have the chance to reelect them for future leadership if they enjoyed their guidance and decisions. A board of directors can review a CEO’s employment periodically, like every year, to determine if they’re qualified to continue in their position.

Salary

While the U.S. Bureau of Labor Statistics (BLS) doesn’t report an individual salary for the role of a chairperson or a president, it cites a median pay of $98,980 per year for top executive positions. Since a chairperson has a more senior-level role compared to that of a president, they may have a higher salary.

According to the BLS, top executives are among the highest-paid employees in the country. Therefore, you can expect a lucrative salary, whether you’re a chairperson or president. Your salary in these positions may also vary based on your employer, your experience level and your geographic location.

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