A chief executive officer (CEO) is in charge of then entire management organization within a company. A board of directors oversees that a CEO is doing her job and that the company is heading in the right direction. CEOs have a variety of duties and responsibilities and do everything they can to ensure the company is successful.
Board of Directors
A CEO is the liaison between the employees of the company and the board of directions. CEOs are responsible for advising the board and keeping it up to date on any changes related to the company's mission or goals. CEOs formulate policies and carry out any recommendations or suggestions made by the board, and may also assist in the selection and evaluation of new and existing board members.
The CEO must put together a senior management team and is in charge of hiring, firing and leading the rest of the company. CEOs need to be aware of how individuals and department are getting along and must resolve any differences between team members. Working as a CEO means making sure that employees are working together and everyone is heading in the same direction. When employees work as teams, they have a tendency to rally together and get the job done.
Strategy and Vision
Developing a strategy and creating a vision is essential for anyone interested in becoming a CEO. CEOs often use a senior management team as advisers and to help plan the company's future. Ultimately, it is up to the CEO to make the final decisions on where the company is heading and how to keep it profitable. CEOs need to help their company differentiate itself from the competition and create lines, products and services to stay or get ahead of the pack.
The only way work gets done is through its employees, and humans are profoundly affected by the culture around them. It's the duty of a CEO to create a highly efficient and positive culture for employees. A CEO can build a culture in many different ways. Every action or inaction by the management team sends a message to the employees, and it's essential to understand how these signals are being perceived by the staff. How employees are treated when they make a mistake, required work attire, rewards and risk taking are all issues that are established by the CEO.
CEOs set the budget within a company and oversees any investment planning and implementation. CEOs must evaluate all sorts of different projects and determine which projects are worth supporting, and which projects may lose money or don't support the vision of a company. Anyone working as a CEO manages the company's capital and carefully looks over the major expenditures. CEOs must establish ways to find potential investors and need to ensure every dollar raised from investors produces at least one dollar in shareholder value.
The Bureau of Labor Statistics says salaries for CEO vary greatly by industry, and the total package often includes stock options, bonuses and other inducements.