A chief executive officer is generally the most senior corporate officer or administrator
in charge of managing a for-profit or non-profit organization.
An individual appointed as a CEO of a corporation, company, organization, or agency typically
reports to the board of directors.
In British English, terms often used as synonyms for CEO include managing director and chief
executive.
Responsibilities The responsibilities of an organization's
CEO or MD are set by the organization's board of directors or other authority, depending
on the organization's legal structure.
They can be far-reaching or quite limited and are typically enshrined in a formal delegation
of authority.
Typically, the CEO/MD has responsibilities as a director, decision maker, leader, manager
and executor.
The communicator role can involve the press and the rest of the outside world, as well
as the organization's management and employees; the decision-making role involves high-level
decisions about policy and strategy.
As a leader of the company, the CEO/MD advises the board of directors, motivates employees,
and drives change within the organization.
As a manager, the CEO/MD presides over the organization's day-to-day operations.
Characteristics According to a study by Carola Frydman of
MIT, from 1936 to the early 2000s there has been a rapid increase in the share of MBA
graduates acting as CEOs; from approximately 10% of CEOs in 1960 to more than 50% by the
end of the century.
Earlier in the century, top executives were more likely to have technical degrees in science
and engineering or law degrees.
International use In some European Union countries, there are
two separate boards, one executive board for the day-to-day business and one supervisory
board for control purposes.
In these countries, the CEO presides over the executive board and the chairman presides
over the supervisory board, and these two roles will always be held by different people.
This ensures a distinction between management by the executive board and governance by the
supervisory board.
This allows for clear lines of authority.
The aim is to prevent a conflict of interest and too much power being concentrated in the
hands of one person.
In the United States, the board of directors is often equivalent to the supervisory board,
while the executive board may often be known as the executive committee.
In the United States, and in business, the executive officers are usually the top officers
of a corporation, the chief executive officer being the best-known type.
The definition varies; for instance, the California Corporate Disclosure Act defines "Executive
Officers" as the five most highly compensated officers not also sitting on the board of
directors.
In the case of a sole proprietorship, an executive officer is the sole proprietor.
In the case of a partnership, an executive officer is a managing partner, senior partner,
or administrative partner.
In the case of a limited liability company, executive officer is any member, manager or
officer.
Related positions
In the US the term "chief" is a for-profit title used exclusively in business, the term
"executive director" replaces "chief" in the not-for-profit sector.
These terms are mutually exclusive and have legal duties and responsibilities attached
to them which are incompatible.
Implicit in the use of these titles is that the public not be misled and the general standard
regarding their use be consistently applied.
In the UK "Chief Executive" and, much more rarely "Chief Executive Officer", are used
in both business and the charitable sector.
As of 2013 the use of the term [director] is deprecated for senior charity staff, to
avoid confusion with the legal duties and responsibilities associated with being a charity
director or trustee, which are normally non-executive roles.
Typically, a CEO has several subordinate executives, each of whom has specific functional responsibilities.
Common associates include a chief administrative officer, chief brand officer, chief business
development officer, chief financial officer, chief operating officer, chief sales officer,
chief marketing officer, chief information officer, chief communications officer, chief
legal officer, chief technology officer, chief risk officer, chief creative officer, chief
compliance officer, chief audit executive, chief diversity officer, or chief human resources
officer, chief commercial officer, chief content officer, chief information security officer,
chief accounting officer, chief analytics officer, and chief strategy officer.
Hospitals and healthcare organizations also often include a Chief Medical Officer, a chief
nursing officer, and a chief medical informatics officer.
In the United Kingdom, the term "director" is used instead of "chief officer".
Senior positions may include the audit executive, business development director, chief executive,
compliance director, creative director, director of communications, diversity director, financial
director, human resources director, information technology director, legal affairs director,
managing director, marketing director, operations director and technical director.
See also CEO succession
Executive officer List of books written by CEOs
List of chief executive officers Occupational Information Network
United States Department of Labor References
External links U.S. Bureau of Labor Statistics - Top Executives:
Description and Outlook 2008–2010 Study: CEOs Who Fired Most Workers
Earned Highest Pay – video report by Democracy Now!
Global CEO Directory - Searchable list of Chief Executive Officers