Key management personnel definition
/What is Key Management Personnel?
Key management personnel are those people having authority and responsibility for planning, directing, and controlling the activities of an entity, either directly or indirectly. This designation typically includes the following positions:
Board of directors. This group oversees the strategic direction of a business, and hires the chief executive officer. It also has several subcommittees that address such issues as auditing, governance, and compensation. The board of directors can include people from outside the organization and people from within its management ranks.
Chief executive officer. This person is responsible for the strategic and tactical direction of a business, and oversees the senior management team. In a few cases, corporations have co-chief executive officers.
Chief operating officer. This person oversees the day-to-day operations of a business, under the direction of the chief executive officer.
Chief financial officer. This person is responsible for the finance, accounting, risk management, and other administrative activities of a business.
Vice presidents. These people are typically assigned responsibility for a key functional area, such as the vice president of engineering, or the vice president of sales.