The role of a CEO or the chief executive officer is very coveted and one of the ultimate goals or achievements for many executives. While everyone wants to be a CEO, not everyone is clear about everything a CEO does, exactly.
What is the role of a CEO?
Let us start with who a CEO is. The CEO is the highest-ranking executive at any company. A CEO is part of the C-suite, C-level, or top management at a company. They share this C-suite primarily with roles such as COO, CFO, CSO, etc. The CEO is responsible for all major decisions to be made for the company and is responsible for the overall image and success of the company. Typically elected or hired by the board of directors, the CEO is also the person that communicates with the board to convey the progress of the company and work on company goals. Some CEOs are more known than others, and that is largely due to either the product or service of the company or the amount of public dealings the CEO is involved with.
What work does a CEO do?
CEOs oversee the operations of an organization and are also seen as the face or identity of the company. Here are a few skills CEOsare expected to have;
- Organizational skills to streamline processes and be efficient
- Interpersonal skills to work well with other leaders and department heads in the company
- Analytical skills to evaluate every strategic goal so the company can achieve success
- Management and leadership skills to successfully direct the company’s vision through the employees
The role of a CEO varies depending on the size and corporate structure of the company. In large corporations, a CEO is largely involved with overall strategic decisions and company growth. On the other hand, in smaller companies, the CEO is more involved with day-to-day functions and organizational culture. And in companies where the founder is also the CEO, the CEO is responsible for a lot more.
What is the responsibility of a CEO?
While there is no specific list of CEO responsibilities, here are few that CEOs are entrusted with;
- Communicating and liaising with shareholders, official bodies, and the public
- Working closely with the board of directors to define the company’s goals
- Implementing the company vision and mission and giving it direction
- Identifying the kind of resources the company might need
- Mentoring other leaders in the company and evaluating their performance
- Overseeing the company’s short- and long-term strategy
- Ensuring a certain level of corporate social responsibility for the company
- Public dealings and company image
For the majority of the time, the CEO is just the CEO, but in smaller companies, usually startups or family businesses, CEOs can also be founders. While this does not change the role or the responsibility of a CEO, there are other titles that do. Sometimes a CEO can also be the president, the managing director, the COO, or the CFO, depending on the CEO’s background. Sometimes a CEO can also be the chairperson of the board of directors, and this is where things can get a little blurred if those in charge are not careful.
These situations are not uncommon and CEOs have to ensure they are able to separate their roles and function as their roles need. The roles that are most in conflict when it is held by the same person is the CEO and the chairperson of the board. And when this happens, the board works to find someone else to take either position.
Chief Executive Officer – CEO salary in India and US
The size of the company also determines the salary of the CEO. As does their own work experience and the industry they function in. According to an Indeed survey conducted in January 30, 2023 the average salary for a CEO per year in the United States is USD128,740. The average base salary for a CEO in India is ₹3,003,722 or USD41,261.32 per year, according to PayScale.
Summary
The role of a CEO is a challenging as well as rewarding one. A company’s success is determined by the CEO, so whatever size the company is, the CEOs role is extremely important. The work of a CEO can take an ailing company to success.
