Dan Boyle, CFA® | Oct 01, 2026

As you know by now the retirement of our long-time President, Scott Horsburgh, has reshuffled the management deck at Provident with me landing the Chairman role. I’m very comfortable with this role. Other than a six-year stint at what was then Chrysler Corporation, I’ve worked for small companies my entire career. Further, during my private equity days I sat on several boards of portfolio companies. As a stock analyst, I’ve also evaluated my fair share of board members and management teams of public companies.

But many of you may not be as familiar with the role of a Chairman and how it fits with the CEO and management team of a company, even a small one.

Wikipedia defines a Chair, also Chairwoman, Chairman, or Chairperson, as the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the group or organization, presides over meetings of the group, and is required to conduct the group’s business in an orderly fashion. In the context of a company, the Chair’s role is to lead and manage the Board of Directors.

In contrast, Wikipedia defines a Chief Executive Officer (CEO), also known as a Chief Executive, Managing Director, or President, as the top-ranked corporate officer charged with the management of a company or a nonprofit organization. The CEO of a corporation or company typically reports to the Board of Directors.

In addition to leading and managing the Board of Directors, the Chairman answers to the shareholders, ensuring the company meets their expectations. The Chairman also sets the board’s agenda, runs the meetings, and manages the directors and their activities to maintain transparency and accountability. The Chairman is fully independent of the company’s operations and management.

The Chairman is responsible for:

1. -Executing good board governance and best practices;
2. -Overseeing all board meetings, including meeting agendas;
3. -Ensuring compliance with industry regulations;
4. -Making sound financial decisions for the company;
5. -Leading discussion between the board and executive teams.
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The CEO sets the direction of the company and oversees the senior management team. In larger organizations day-to-day operational duties may be delegated to a Chief Operating Officer (COO), but ultimately executive accountability rests with the CEO. The CEO sets the firm’s direction, including how the company competes and which markets it enters.

The CEO is responsible for:

• -Communicating between the board of directors and senior management;
• -Ensuring daily activities align with the organization’s plan;
• -Reporting to the board on behalf of the entire organization;
• -Representing the organization publicly;
• -Managing executive-level recruiting and hiring decisions.
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Boards usually meet quarterly to set long-term plans, discuss committee reports (such as compensation and audit), review and monitor the financial reports, oversee the senior-level executives and vote on major decisions. Board directors are also responsible for recruiting, appointing and evaluating the CEO’s performance and replacing those who don’t meet performance expectations.

Historically the Chairman and CEO roles were filled by one individual, particularly in public corporations. Over the years trends have moved toward a separation of these roles, acknowledging the inherent conflict between what is in the best interest of shareholders versus management. A recent study done by The Conference Board confirms the trend is continuing, with independent chairs increasing to 39% of S&P 500 companies in 2025, up from 33% in 2020. Among smaller public companies, independent chairs are more common, making up 46% of Russell 3000 companies.

Smaller companies with fewer employees often see managers and owners wearing multiple hats. For these businesses a Chairman is often part of company operations and management, carrying the title of Executive Chairman. In the CEO and Executive Chairman relationship, the CEO still runs the business day to day, and the Executive Chairman leads the board while staying far closer to operations than a non-executive Chairman would. I’m in the Executive Chairman role as a Portfolio Manager of Provident.

Historically, Provident was led by Scott in the dual Chairman and President roles, including control of the Board of Directors. We have settled on separating the roles of Chairman and President, even though we are a small company, and are contemplating adding independent, outside directors to bring expertise from the investment management industry to continue our growth. As always, clients communicating their needs provides valuable feedback to make sure the investment products and services we offer remain useful and relevant.