The Difference Between a Founder and a CEO
I had a great discussion with Pavel Hegai and Victor Savyuk. We agreed on the fact that CEO is a ROLE. A role that implies different types of leadership. All types of leadership perform important integrative functions for a company. According to Adizes Institute. We also agreed that a CEO is probably the only person who is fully involved in a company’s success, apart from the founders.
A CEO implies full-time involvement in a startup and does not compete by working on other projects. It works in different stages only, I am convinced. But fundraising will be extremely difficult in this situation.
A CEO can be a founder, but it is not necessarily. If a CEO is not a founder, they just need an equity share. Founders need to put up with an idea that there is a person in charge of the company’s success. It is a CEO. Therefore, the CEO simply needs to be given the authority to steer that ship.
A CEO’s job is necessary to be paid. The involvement of founders may not be paid if there is no specific role in the project. Founders live for profits and/or to grow the value of the company.
- Founders are the inventors and creators of the ship;
- CEO is the captain of the ship.
What do you think?