Interim CEO Definition | Global Currency Online
What is an Interim CEO?
An interim CEO is a person appointed by an organization’s board of directors to envision the position of chief executive officer during a transition period or following the sudden departure of the former CEO from the company.
These CEOs are tagged with the “interim” label because they have not officially received the title of full-time CEO; Nevertheless, they take full responsibility for the CEO position within the place.
Interim CEOs are sometimes called upon to “regulate the ship” during times of great turmoil. Most often, an interim CEO is employed by an organization’s board of directors or shareholders. Interim CEO compensation will most likely resemble the day-to-day salary and benefits of a full-time CEO.
Key points to remember
- An interim CEO is usually appointed when an organization unexpectedly loses its CEO.
- A CEO is the highest-ranking government in an organization and is usually the general public face of the company.
- The duties of an interim CEO (or full-time CEO) are to act as a liaison between the company’s operations, its shareholders and its board of directors, to manage the vital actions of the company and even the day-to-day operations of small businesses.
- CEOs could serve on an organization’s board of directors, but interim CEOs will not, depending on the circumstances.
How an interim CEO works
Although companies historically name their current worker base when hiring an interim CEO, companies may advertise interim CEOs from outside the agency.
An interim CEO generally has the same duties as a CEO. They are responsible for the large-scale, day-to-day running of a business or business, especially in small businesses.
One of the many reasons for this is that the abilities desired for interim CEOs are usually different, as they are usually needed to manage a disaster, versus day-to-day business operations. A CEO is responsible for hiring staff and pays particular attention to hiring senior administrative positions. A CEO also manages currency selections for the company.
An interim CEO could also be appointed by an organization’s board of directors to imagine the position of chief executive officer when an organization faces a public relations disaster.
Typically an interim CEO remains and at other times is transferred after a full-time CEO is recognized and employed. A president of an organization usually ranks below the position of CEO, but usually, depending on the size and type of business, the roles of CEO and president can be found in the same place.
Real world instance
A final example of an interim CEO taking over an organization was after Equifax’s giant information breach in September 2017. Richard Smith, CEO of Equifax who resigned in September 2017 due to criticism over his handling a major cyberattack, was replaced by Paulino do Rego Barros Jr., who immediately apologized for the information breach and outlined methods to help those affected. He held this position until January 2020.
What is the distinction between a successful and interim CEO?
Generally, a successful CEO is one who is CEO for a set period of time. A successful CEO can be appointed CEO for a wide range of causes with a set deadline and after the expiration date is no longer CEO. An interim CEO is one who takes the CEO’s place for an indefinite period of time; normally, until a brand new CEO is appointed.
Which title is higher than CEO?
Chairman of the board is a more important title than CEO. A boss can hire, fire and evaluate a CEO. A CEO is the best place in the operational construction of an organization; nevertheless, a board can determine who the CEO is and subsequently the chairman, who leads the board, has power over the CEO.
How long is the interim CEO final?
Interim CEOs can last multiple periods depending on the company; normally, however, they do not last long. Interim CEOs are appointed for the time it takes to find another CEO, and this can normally be achieved fairly quickly. Companies usually have a short list of people they would like to appoint as CEO, so after negotiations a new CEO can start quite quickly after an interim CEO takes the place.