Can I be both CEO and chairman?

Dear Aunty B,

I have been running a team of three from my lounge room for the last few years and we are taking the big step of moving into an office and hiring another two people.

Despite the world chaos we are traveling well and I want to set up the right structure for our future business.

I can’t afford a board and I worry about losing control if I appoint a chairman. Can I be both CEO and chairman? Does that make us look a bit more grown up?

Growing up!
Darl

Dear Darl,

Congratulations in reaching a very exciting stage in your business. I loved moving from that precarious stage to knowing we had arrived!

In the professional world? Being both CEO and chairman makes you look like a control freak. And unprofessional. Probably the greatest example of this is Rupert Murdoch, who despite a barrage of criticism from corporate governance experts all over the world finds absolutely nothing wrong with playing both roles. Really. Why bother even defining the two roles if you are going to stick your hand up for both. It’s a bit like saying you are going to be the Prime Minister and the Governor General.

Or the surgeon and the patient. Or the husband and the mistress. Now I am getting silly. My point is this. One of the main functions of the chairman is to sack the CEO. And Rupert is never going to sack himself, despite a poor performance review.

Here is what you should do. Appoint yourself CEO and put on an independent director. If you have a great accountant he or she could be a good appointment.

At your stage of development you need to focus on what is good for the business, rather than worrying about appearances.

Be smart,
Your Aunty B

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