Thanks again Raindance.  Sounds very similar to your situation.  To update:

I have been proactive with employees and have had success with front line staff coming to me and not fearing for confidentiality.  Slowly but surely building up trust levels.  Have not been successful in moving the location of my office, but there are bigger changes in the works regarding restructuring that should take care of this issue in time.  Looking 3-5 months ahead I should have a more secluded office space.

I have not addressed the CEO's manners/attitude with her.  Basically, how she manages is how she manages and I am working with it.  In some cases, people really do need to have a thicker skin and I have now been able to see both sides of some of the employee's issues.  In summary, she can be abrasive but not to a level where people should fear for their jobs.

There is a level of paranoia here, because we are turning over into a new year with new goals, and some employees are just not up to par.  I have personally sat in on 12 terminations in the past two months, and they are all employees that were compromising resident safety and/or comfort, spreading a negative attitude, sexually harassing other employees, or downright not qualified to do their jobs.  So other employees are worried (and some rightfully so).  Once the "restructuring" dies down, I believe the atmosphere will calm.

I don't envy the CEO her position.  She is definitely insecure but seems to be doing the best she can, and the results prove her success so far.  After a heart-to-heart meeting I'm confident she supports me in my endeavors.

Onward....