Though one of the most talked about roles in the world of business, the responsibilities of a chief executive officer are unclear to many. In the corporate world, while money plays an enormous role in the existence of a company, a good structure and system make all the difference.
And that’s the concern of every Chief Executive officer (CEO).
The name Chief Executive officer may sound like what you’ve heard a thousand times (and even more). But can you beat your chest and say you know and can answer the following questions:
- What does a CEO do?
- What’s the primary Role of the CEO in strategic management?
- How much does a CEO make?
You don’t need to crack your head so much over those questions. Because those are part of the questions, which this article proposes to answer for you.
So, read on.
What does a CEO do?
The acronym CEO stands for Chief executive officer. And it is the highest-ranked position or person in the organizational structure of a corporate body.
Most people think that CEOs are just like “demigods” in the business world; because of the conception that they have the autonomy to do whatever they choose. But that’s not what it is in reality.
Meanwhile, the chief executive officer’s duties and responsibilities are similar to that of a business owner or president. But before we get down to the Chief executive officer roles and responsibilities, you must note that a CEO is accountable to the board of directors.
As you know, the board of directors consists of members of the executive committee elected by the stakeholders to ensure the organization’s goals and mission get accomplished.
So that has already given you a clue as to what is obtainable in the corporate world. The Chief executive officer doesn’t operate as a “loner” like a sole proprietor, who has the autonomy to make certain decisions without consulting anybody.
Responsibilities of a Chief Executive Officer
Out of the many chief executive officer duties, the first is to ensure profitability and efficiency. But to achieve this, the CEO meticulously performs the following functions:
- Perform executive leadership responsibilities, which include planning, developing, directing, and implementing fiscal and operational policies and functions.
- Ensure the effective and efficient utilization of the company toward the attainment of its business goals and objectives
- Assess and keep track of the company’s performance to track areas of weaknesses and strength; to see how radical and strategic strategies are enforced.
- Work with the board of directors and other senior executives in harnessing the power of analysis and foresight along trends that have immense financial and budgeting implications on the company.
- Out of experience, he offers expert advice on core aspects of the business and modalities relating to contracts, negotiations, or business deals, which can influence the company’s bottom line in the long run.
- Communicate the predetermined corporate culture, vision, and mission to the stakeholders and board of directors.
CEO Education Requirements and Qualifications
A bachelor’s or master’s degree is a prerequisite for holding the CEO’s position in the corporate setting. Yet the specificity of the field of the degree may vary from industry to industry or sector.
Take the private sector, for example; a bachelor’s or master’s degree in business administration or other business-related fields such as management, marketing, or equivalent is required. But that may vary from sectors like health, education, engineering, or as the case may be.
What is the salary of the CEO per month?
Does that sound like what you’re thinking in your mind already?
The truth is that the issue of the salary of any professional can be dicey for any profession. And that’s why interviewees fall its twist during job interview sessions.
Having said that, how much CEOs make is determined by a couple of factors, which include the state or region, educational level, years of work experience, etc.
In any case, being a CEO is one of the jobs that can make you a billionaire. And according to Salary.com, a chief executive officer in the United States earns an average annual salary between $606,855 and $1,034,436.
Consequently, a typical CEO makes an estimated average salary of $66900 per month (approximated to the nearest hundred) in the US.
The Important qualities of a CEO
While the position of a CEO is one clamored for by everyone as they climb the corporate ladder, his roles and responsibilities are not a piece of cake. And to execute the powers and functions of the Chief Executive, one must have some essential qualities in place.
So below are five (5) qualities of CEOs:
- Strong leadership ability
- Business acumen and strategic mindset
- Outstanding problem-solving skills.
- Must be Adaptable and Reliable
- Ability to effectively communicate at all levels
FAQ– Responsibilities of a chief executive officer
Who is above the CEO in an organization?
Usually, the CEO is hired or elected by the board of directors. For this reason, the board director can break the wing of power of the CEO by simply firing him. That said, you now know that the Chief executive officer is at the mercy of the votes of the board of directors.
Who does a CEO report to?
A Chief Executive officer is accountable to the board of directors and then reports to them. The board members consist of high-profile shareholders with tremendous investment in the company, executive officers, and people with exceptional acumen in business or valuable expertise core to the company’s existence.
The CEO may need to update the owner of the operations of the organization along its set goals.
Is a CEO the owner of a company?
A CEO can be the owner of a company. That’s when a company is a small business– where owners are only accountable to their customers and have absolute control over their business operations. But that’s almost impossible in big corporations or publicly traded companies where CEOs report to the board of directors yet account to the stakeholders.
What are the daily duties of a CEO?
Since most CEOs have Executive Assistants, they start their day by relating to them. And these executive assistants help them to stay in constant and unhindered communication with company executives and the board of directors by receiving messages.
Also, he attends to crucial emails, make phone calls, and host business meetings with senior executives such as Chief Strategy Officer (CSO), Chief Financial Officer (CFO), and other prominent officers. So that they can deliberate on high-powered strategies that can cause a positive shift in the overall performance and productivity of the company.
What are the roles and responsibilities of a CEO?
Indeed, a CEO performs many managerial roles that may vary from company to company or industry to industry. But out of these functions is the close working with the CFO in establishing and sustaining good relationships with the company’s bankers and other financial partnerships.
Is being a CEO an easy or high-stress job?
You can’t really answer this question with a yes or no. Because it depends on the individual and other factors. But if you enjoy anything that has to do with management, ranging from people to economic resources, you may not consider being CEO a high-stress job, even though it’s a taxing one.
The job description of a Chief Executive officer is similar to that of a managing director. Some people and corporate bodies might consider both as the same. However, you must know a CEO is a figurative head in the organogram of a company who’s accountable to the board of directors.