The term “Founder” and “CEO” refer to two different things. Oftentimes, they could be the same person in an organization whereas most of the time, it requires two separate individuals. Let us look at the definitions of these two terms and how the positions actually differ.
Founder Vs CEO
“Founder” refers to someone who starts the company. In simple words, they are the entrepreneurs who get the idea for business and acts upon it. Moreover, the founder brings resources, builds a team, gets finances, and finds the right product and services to sell. Basically, the term “founder” describes your relationship to the history of the business.
On the other hand, “CEO” refers to the highest-ranking executive in a company. It reflects your current position in the organization’s hierarchy. As key personnel appointed by the Board of Directors, a CEO carries the responsibility of making major corporate decisions, managing organizational resources effectively, acting as the primary point of communication between the board members and corporate operations.
What is the difference between founder and CEO’s role?
Company founders and CEOs have many duties and responsibilities to execute and undertake. In order to avoid any shortcomings and help the business excel, as founders and CEOs, you will be expected a lot. Although both the positions are vital to any organization, their roles may differ slightly which is discussed briefly below;
- While the Founders set the company’s vision, CEOs reinforce and implement those mission and vision set by the firm.
- Founders assemble a solid team. Essentially, they are the ones running the business and making it a success. CEOs evaluate and ensure the team’s performance.
- Unless a CFO is appointed, founders inevitably become in charge of all finances associated with your corporation whereas CEOs would be assessing the risk and ensuring they are monitored and minimized.
- As Founders, fundamentally they have to manage their Board of Directors. On the contrary, CEOs communicate on behalf of their company with shareholders, government bodies, and the general public.
Should a Startup use founder or CEO as their title?
As tricky as it sounds, the topic is a bit debatable. In the early stages, the role of founders and CEOs overlap. Basically, both the position would exercise similar duties. Hence, the argument to use the term “founder” or “CEO” for a startup is an entirely individual choice.
Typically, the company founders are responsible for setting out the organizational vision. Not only that, but they also have the responsibility to build a team and structure their company to the next level. As founders, they are in the best position to execute it. So why not, use “founder” as their title during their startup journey.
Most often times than not, the founders obsess excessively on holding the title of CEO so as to exercise the level of control in an organization. In most cases, start-up firms don’t require two positions. As the company starts to grow, it can always hire a CEO later on.
Top 10 richest Founders and CEOs in the world 2020
Let us now take a look at the top 10 richest CEO in the world as of 2020;
1. Jeff Bezos
Amazon Founder and CEO, Jeff Bezos has a total net worth of $181.4 billion which makes him the richest man on earth as of 2020.
2. Bernard Arnault
Ranking at the second spot in terms of riches is the LVMH – France Chairman and CEO, Bernard Arnault. He is worth $141.9 billion.
3. Warren Buffet
Warren Buffet is an American investor, business tycoon, and the chairman and CEO of Berkshire Hathaway who is worth 85.9 billion.
4. Mark Zuckerberg
The co-founder, CEO, and Chairman of Facebook, Mark Zuckerberg has an estimated net worth of $99.1 billion.
5. Jim Walton
A sole heir to the fortune of Walmart, Jim Walton has a total revenue of $69.9 billion.
6. Ma Huateng
A well-known business magnate, Ma Huateng is the founder, Chairman, and chief executive officer of Tencent with a net worth of $57.6 billion.
7. Jack Ma
Co-founder of Alibaba Group, Jack Ma ranks 7th in terms of the world’s riches with a networth of $62.3 billion.
8. Charles Koch
As of 2020, he has an estimated net worth of $44.9 billion.
9. Elon Musk
He is the CEO of SpaceX.
10. Sheldon Adelson
The American businessman is worth 35.1 billion.