chief executive officer
The chief executive officer (CEO) is the senior manager or leader of a business or other organization, such as a nonprofit or nongovernmental organization (NGO). A CEO has final decision-making authority within the organization (subject to the general consent of a board of directors, if there is one) and holds a number of important responsibilities, including:
- Articulating the mission or purpose of the business or organization
- Determining its managerial and reporting structure
- Setting its short- and long-term goals; devising and implementing strategies for achieving them
- Managing its operations and resources at a high level
- Establishing a culture that fosters employee engagement, adaptability, accountability, and learning (or skill building)
- Reviewing the performance of lower-level executives and their units or teams
- Representing the business or organization in public forums and industry-related gatherings
- Assessing and reporting (to shareholders, stakeholders, boards of directors, or owners) on its operations at regular intervals
- Ensuring its overall success—which, in the case of businesses, is normally assessed in terms of potential increases in net income, market share, shareholder returns, and brand recognition
In the case of larger businesses and some other larger organizations, the CEO is hired or internally promoted by a board of directors, which may subsequently dismiss the CEO if it is dissatisfied with the person’s performance.
The large and small of it all
Business come in all sizes, from sole proprietorships to partnerships to corporations with thousands of employees. Each structure offers advantages and disadvantages. Learn about the types of businesses, how they are formed, and what you need to know to start your own business.
The specific duties and responsibilities of CEOs tend to vary with the size, structure, and culture of the organization and the nature of the industry or environment in which it operates. For example, the CEO of a small company is typically more directly involved in day-to-day operations and lower-level decision-making than the CEO of a large company.