Chief Executive Officer

• Home
• Dictionary
• Methods
• Views

• Register
• Log in
• Help

• Change & Organization
• Communication & Skills
• Decision-making & Valuation
• Ethics & Responsibility
• Finance & Investing
• HRM
• Knowledge & Intangibles
• Leadership
• Marketing
• Program & Project
• Strategy
• Supply Chain & Quality

Description of Chief Executive Officer. Explanation.

Duties of a Chief Executive Officer. Responsibilities.

The Chief Executive Officer (CEO) is the highest ranked manager of a corporation. He (or she) is primarily responsible to carry out the strategic plans and policies as established by the board of directors. He runs the corporation at the highest level. A CEO of a large corporation has without a doubt one of the most complex and demanding jobs that exist.

A CEO job description typically involves overseeing highly related and complex activities and issues such as the Corporate Mission, the Corporate Purpose, the company's future Scenario Planning and Corporate Vision, the creation and implementation of the Corporate Strategy, and the Corporate Reputation.

Often he also deals with Investor Relations and Stakeholder Management at the highest level.

Furthermore he is involved in hiring, firing the senior management team, which in turn hire, fire, and lead the rest of the organization.

Last but not least he is also responsible for informing the Board about significant issues. He may or may not also hold the title of Chairman of the Board.

Skills of Chief Executive Officer

The CEO is a strategic thinker and should have a clear vision of the future of the corporation and the industries it is operating in.

Because he acts as the face of the corporation, the CEO is typically a very good communicator and an empathic and collaborative person. He needs to have the ability to establish and maintain loyalty (board, senior managers, employees) and trust (public, shareholders, etc.) in the company.

Corporate Governance and the CEO

In countries with a one-tier board structure (USA, Great-Britain and Japan) the CEO often also holds the position of Chairman of the Board. The CEO then heads the (combined) Board of Directors.

In countries with a two-tier board structure (Germany, The Netherlands, Finland) the Chairman is not the CEO and there is a formal division of power. The Chairman only heads the Supervisory Board, but not the Management Board. The Managing Board is headed by the CEO.

In many other countries there is a choice for a one- or two tier board structure.

The CEO reports directly to the Chairman and Board of Directors (one-tier) or to the Supervisory Board (two-tier).

More on Corporate Governance

Power of the CEO

Besides the mentioned one- or two-tier board structure, the power and authority of the CEO depends on a number of additional factors including:

• The personality and clout of the chairman and the CEO. Compare: Charismatic Leadership

• The culture or climate of board meetings.

• The composition of the board.

• The boards' level of participation in the selection of the CEO and of the other top managers.

• The board's ability to shape, monitor and/or control the implementation of the strategy.

Leadership

Some CEOs, such as GE's Jack Welch have been almost almighty and became cultural hero's during the stock boom of the 90s. But after the reports on accounting fraud and the executive incentives scandals at the end of the first Internet boom, many CEOs adopted a more careful, consensus-building attitude and avoid unnecessary media contacts.

Chief Executive Officer Forum New Topic  |  Help IOTA, the Multiplier Formula of the Chief Executive Officer "To have positive and profitable effects on the organization, the CEO must seek for IOTA, where: I = Intelligence, O = Objectivity, T = Transformational spirit, and A= Authenticity...." The Tasks of a Chief Executive Officer "The role of CEO lies with the responsibilities and authorities given to him by the owners / board of directors / shareholders. It is like sailing a ship on the sea. He has to manage his resources..." Competencies of Chief Executive Officer "What would be positive competencies necessary for CEOs? Are these competencies effective in different regions, cultures and businesses?" What is an Executive Director? "In the hierachy of the structure, where does the executive director play - From where are his/her roles and power derived? Does the executive director report to the CEO or to the board?" Chairman of the Board vs Chief Executive Officer "Does the CEO work for the Chairman of the Board and does the Chairman have the right to fire the CEO?" Chief Executive Officer and Managing Director of a Corporation "Is the CEO effectively the MD of a Corporation, or do the two fulfill different roles?" Keep in touch with this topic Please log in... New Topic

Chief Executive Officer Special Interest Group Visit the Special Interest Group

Compare with: Chairman of the Board  |  Seven Surprises for New CEOs  |  Chief Financial Officer  |  Chief Operating Officer  |  Corporate Governance  |  Leadership Styles  |  Strategic Stakeholder Management  |  Parenting Styles  |  Covert Leadership  |  Relational Capital

Return to Management Hub: Change & Organization  |  Communication & Skills  |  Decision-making & Valuation  |  Ethics & Responsibility  |  Finance & Investing  |  Human Resources  |  Knowledge & Intangibles  |  Leadership  |  Strategy

More on Management  |  Return to Management Dictionary  | 

End of description Chief Executive Officer. An explanation.