With an inherent conflict of interest. His/her primary role is to raise money and the best way to assure making money is to have successful athletic programs. The Duke AD is dependent on their b-ball program, Iowa is dependent on football, etc. So they may be a CEO, but with less control over their enterprise than those they are supposed to supervise. Coach K is Duke athletics as Joe Pa was to PSU. To also require ADs to assure that there is "institutional control" when that will actually be an impediment to cash flow is where the conflict of interest arises...see Gene Smith....see PSU's horrific situation. It is time to re-evaluate the athletic depts of higher education. Put the ADs in the fundraising arm, and outsource the accountability to independent sources.
To assume there is no conflict of interest is burying your head in the sand. I think accountability and fundraising would both improve, and I wouldn't be surprised if it would be cheaper to institutions (so Iowa boys golf, track, baseball may actually last this decade). But, most importantly, we avoid the the CEO/AD who will do anything to protect the brand, including actions that harm others.