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Is the following logical? CEO/MD (top), then GMs then Directors Is not CEO - Directors - GMs more logical?

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Question added by Michael Frame
Date Posted: 2016/05/03

Correct, a top down approach reflects here

Duncan Robertson
by Duncan Robertson , Strategy Consultant , Duncan Robertson Consultancy

It's not a question of logic, it's a question of law.   The Directors are the people appointed by the shareholders to conduct the business of the company.  What titles the Directors choose to dish out to the managers that they appoint is up to them. 

The CEO has no authority of any kind over the Directors in their capacity as Directors: Directors are answerable only to shareholders, not other directors. 

As the most senior manager, the CEO (if the company has one) may have authority over other managers, who may also be Directors. 

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