What happens after a founder steps down as CEO?
Earlier I was reading a blog post about a founder of a company that stepped down as CEO but continued to be a part of a company because she still had majority shares.
So I've been wondering if that is possible is all scenarios as long as the founder maintains majority shares? For example, would in some cases stepping down as CEO require the founder to give away or sell off all their shares?
Also if it is what 'position' would the founder now hold in the company and what exactly would she do?
- JKRBLv 78 years agoFavorite Answer
The CEO is just another employee of the company. He/she is selected by the board of directors. Being a shareholder and being an employee really have nothing to do with each other. Although, by being the majority share holder, she can control who sits on the board. So in your case she can step down and still retain all her shares. As far as position goes, since she has control of the board of directors, she could probably choose any position she wants. And since she is still in control of the board, she has the option of them voting her back in as CEO.Source(s): Accounting Fan