Chief Executive Officer (CEO)—Roles and Responsibilities

Many business professionals aspire to become chief executive officers (CEOs). As the highest-ranking person in an organization, the CEO leads all employees, navigates social and economic challenges, and drives the enterprise to grow and profit. It’s a challenging role, but one that some people thrive in. 

Discover what a corporate chief executive’s role really looks like. See how it compares to other top titles, and learn about the typical attributes and qualifications you’ll need if you want to ascend to the top spot in corporate leadership.

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What is a CEO’s role in the structure of a corporation?

The highest-ranking executive, the CEO, handles all overall operations management and company performance. As a CEO, you’ll make high-priority decisions, set strategic direction, and oversee plans to achieve organizational goals. In addition, you'll articulate and embody the company’s vision and set the tone for your organization’s work culture. 

You will meet with key stakeholders daily and work to manage internal and external relationships. You'll foster sustainable growth and operational progress through thoughtful decisions, investing in organizational futures, and analyzing outcomes. As a CEO, you would typically report to a board of directors and directly manage other C-suite executives. 

What are the key responsibilities of a CEO? 

As a CEO, you will shape your company’s direction and ensure its profitability and competitiveness in the marketplace. Common responsibilities you might have include: 

• Setting vision and strategy: Along with defining your organization's mission, vision, and values, you would embody them and set goals to achieve them.

• Allocating resources: As CEO, you'll decide how to invest a company's resources (capital, personnel, and time) to achieve business objectives.

• Managing operations: You'll oversee day-to-day operations with an eye to their alignment with overall strategic goals.

• Building and leading the executive team: As CEO, you’ll select your company’s top leadership, manage them, and ensure they work well together.

• Communicating with stakeholders: As the main face of the company, this role involves keeping internal and external stakeholders informed. 

Read more: What Is Corporate Leadership Training?

What is the difference between a CEO and the owner of a company?

A CEO handles the day-to-day management of a business and aligns strategy with business objectives. CEOs typically report to a board of directors or a company owner. 

As the name suggests, an owner has a financial investment in a company, either as a sole or partial owner. An owner may play a role in daily operations, but they typically hire a CEO to oversee company oversight. Note, however, that a CEO can be an owner and vice versa. It’s not an either-or proposition.

What is the difference between a CEO and the chairman of the board?

A CEO runs a company and reports to the board. The board, which represents a combination of management and shareholder interests, appoints the CEO. 

The board doesn’t appoint the chairman or chair—it elects them. The chairman then runs the board, setting agendas, ensuring meetings run smoothly, and working to achieve consensus. 

A board chair can’t overturn a board decision, but the board can overrule a CEO’s decision.

In some companies, the same person serves as CEO and board chair. Some argue that the practice reduces the business’s available checks and balances. 

Another approach is for the CEO to become the board chair, which takes advantage of the CEO’s relationships and expertise. 

CEO skills

A CEO needs to be a strong leader. Since you’re in charge of the direction of the entire business, you'll need confidence and the ability to motivate others. 

The CEO role also demands business acumen. You’ll need to understand a profit and loss statement, make and stick to budgets, control costs, and analyze data to identify opportunities and areas where the business can improve. 

You may need to make difficult decisions or navigate a crisis, so an ability to think critically,  solicit input, and have an open mind can also help in the CEO role. Strong problem-solving skills and creativity can also support your resilience as a CEO.

CEOs need good communication skills. You’ll need to represent the company to the public, the media, investors, clients, and all internal departments and employees, and good written and verbal communication can help.

As CEO, you must also be wise enough to learn from past experiences. Having flexibility allows you to adapt to changing business conditions and keep your organization moving in the right direction.

Read more: What Are Interpersonal Skills? And How to Strengthen Them

CEO salary and job outlook 

CEO salaries make the news when they’re astronomical. Consider Elon Musk’s salary in the billions of dollars per year as CEO of Tesla or Tim Cook’s nearly billion-dollar salary as the head of Apple, Inc. Yet; those salaries don't represent most CEOs. According to Lightcast™, the average annual earnings for chief executives comes to $182,141.25 for those with a bachelor's degree and at least five years of experience [1].

The US Bureau of Labor Statistics forecasts employment for top executives will grow by about 6 percent from 2023 to 2033. This amounts to an average projected growth of about 277,600 openings for top executives annually throughout the decade [2].

CEO career path 

You can achieve a CEO position by taking various pathways. However, you will likely take several steps in common with others along the way. 

Education

Typically, CEOs start with a bachelor’s degree in business administration, finance, or a field of study specific to the organization’s industry. Many will continue their education and earn a Master of Business Administration. Going to business school can provide exposure to business theory and management skills to develop professional expertise.

Experience

On-the-job experience provides a great way to begin your journey to a CEO’s role. Many CEOs work in several different organizational areas before taking the top spot. 

Starting in an entry-level position at that company, or a similar one in your industry, can help you understand what working on the front lines looks like. Promotion through the ranks to more managerial roles enables you to develop your skills as a team leader. 

Network

CEOs often rely on their business relationships to get things done. Start early to expand your professional network. You might join professional associations, industry groups, or LinkedIn. You could also take advantage of continued learning opportunities to gain exposure to a wide variety of people in different roles.

Looking for a mentor and, later, becoming one yourself can also help you develop as a leader. You’ll build more relationships and gain a fresh perspective.

Read more: What Is Networking? How to Grow Your Network

Getting started on Coursera

Understanding the roles and responsibilities of a chief executive officer can help you decide if you want to pursue this career path. It may also pique your interest to learn more about leading a company through an online course. 

Consider taking Inclusive Leadership: The Power of Workplace Diversity, offered by the University of Colorado on Coursera, or boost your leadership skills by taking the Leading People and Teams Specialization, offered by the University of Michigan on Coursera.