Hi Srinivasan,
It is of utmost importance to be positive as a HR personnel and taking action alone cannot solve the problems. It sounds very autocratic. I am sorry, I dont mean to be harsh but I see a lot of people doing this. Its not that, you are a HR Manager and you can take action against anyone but I would suggest you work around the problem and turn it into an oppurtunity. If you can convince your CEO to fall in line, it would set a great example for others.
In any case, you have not mentioned the offence commited by your CEO and only based on understanding the offense he has committed, someone can suggest a solution. Nevertheless, I would say that, taking action against CEO is absurd and he is immuned to your actions.
Regards,
Muthukumar K