Who Can Sign What? (Signing Authority Matrix)

Who has the authority to sign various documents and agreements is a crucial aspect of organizational governance and operational efficiency. Understanding the signing authority matrix is essential for ensuring that the right individuals are empowered to make decisions and commitments on behalf of the organization. This matrix delineates the levels of authority assigned to different roles within the company, specifying who can sign what types of documents.

Typically, the signing authority matrix outlines various categories of documents, such as contracts, financial agreements, and legal documents. For each category, it designates specific positions within the organization that are authorized to sign. This ensures that there is clarity and accountability in the signing process, which helps to mitigate risks and prevent unauthorized commitments.

For instance, high-level executives like the CEO or CFO may have the authority to sign major contracts or financial agreements, while department managers might be authorized to sign off on smaller operational documents. Additionally, the matrix often includes stipulations regarding the need for multiple signatures for particularly significant agreements, which serves as an additional layer of oversight.

Document Type	Examples	Authorized Signatory	Required Approvals
Sales Agreements	MSAs, Order Forms, SOWs	VP of Sales or higher	Legal, Finance
Vendor Agreements	Procurement, SaaS, Consulting Services	Director of Operations or higher	Legal, IT (if tech), Finance
Employment Offers	Offer Letters, Executive Contracts	Head of HR or CEO	Legal, Finance (Exec only)
NDAs (Mutual & One-way)	Standard confidentiality agreements	Department Head or higher	Legal (for non-standard terms)
Partnership Agreements	Strategic alliances, co-marketing	C-Level (CEO, COO, CMO)	Legal, Finance, Compliance
Leases or Real Estate Contracts	Office leases, real estate purchases	CFO or CEO	Legal, Finance, Board (if >$500k)
Marketing Agreements	Influencer, Sponsorship, Media buys	Director of Marketing or higher	Legal, Finance
IP/License Agreements	Software licensing, technology transfers	CTO or General Counsel	Legal, Finance
M&A Agreements	LOIs, Asset/Stock Purchase Agreements	CEO & Board of Directors	Legal, Finance, Compliance, Board
Grant Applications or Acceptances	Government or private grants	VP or above	Legal, Finance, Compliance (if needed)

By implementing a signing authority matrix, organizations can streamline their processes, enhance compliance, and maintain better control over their contractual obligations. It is essential for all employees to be aware of this matrix, as it fosters a culture of responsibility and ensures that all actions taken on behalf of the organization are well-informed and properly authorized.