What Is a Chief Executive Officer? A Look Into a CEO’s Role

A chief executive officer, or CEO, is the job title afforded to the highest-ranking executive at a company. The primary role of the CEO is to formulate, guide, and maintain the company’s strategic plan. Hence, they are responsible for the company’s big picture: its overall direction and profitability. The CEO also oversees the company’s C-level or top executives, which can include the president, who is typically the second-in-command, the chief financial officer (CFO), the chief operating officer (COO), and the chief marketing officer (CMO). The CEO ensures that senior management adheres to the company’s business decisions.

A CEO is the main conduit between the company’s senior executives and its board of directors and reports directly on business developments to them. In some cases, the CEO may have a seat on the board and even serve as its chairman. The board members set the responsibilities of a CEO which, depending on the company’s size, may include everything from public relations to overseeing causes related to the organization’s mission statement.

The career path to becoming a CEO typically begins with a bachelor’s degree in business administration or a related field and may include a master’s degree in business (MBA). Several years of experience in corporate finance is also crucial and typically follows a path from management to an executive position. But exhibiting the traits that make a great CEO are just as important, which includes world-class leadership skills, management know-how, business strategy, decision-making, and strong communication.

A CEO’s job description encompasses many different elements. Some responsibilities of a CEO include:

• Day-to-day business. CEOs take a hands-on approach to the company’s day-to-day operations by administering corporate governance or by-laws through their directives. In the case of smaller companies or startups, this may include everything from human resources to team-building. CEOs of nonprofit organizations may be required to lead fundraising efforts.
• Manages the C-suite. The CEO leads and guides the company’s C-suite or executive team, which may include the senior management team depending on its organizational structure. They will carry out the company’s strategic goals and vision with advice from the board of directors and the company stakeholders—who elect the board—by assigning directives to executives and management.
• Creates company policies. A CEO is ultimately responsible for making strategic decisions that will positively accelerate the company’s valuation to meet the long-term goals of its employees and stakeholders. Among these decisions are marketing strategies, forging connections to other companies, resource management, and the tone of company culture, all with the ultimate goal of increasing shareholder value, employee motivation, and customer satisfaction.

The difference between a CEO and the president of a company depends on the company itself. In most cases, the CEO is the highest-level executive at the company, and the president is second-in-command. The president is generally tasked with aiding the CEO in carrying out the company’s vision through meetings with vice presidents and management.

However, in certain companies, CEOs may also serve as both president and the public face of the company. Additionally, CEOs may be the managing director and chairperson of the board of directors at smaller companies.

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