A chief executive officer (CEO) is the person in charge of a company. In small businesses the CEO and the founder are usually the same person.
A CEO is the highest ranking person in a company. They’re also sometimes called a chief executive or a managing director.
The CEO is hired by the board, and they report to the board as well.
However, if you set up a small business, it’s usual to appoint yourself as CEO. There will be less formalities associated with the position, but you should still aim to lead the company in a good direction and to make sound business decisions.
What is the role of a CEO?
The CEO’s main goal is to ensure that day-to-day operations are running smoothly and that the company is making a profit, or that the company’s market share is increasing with a view to making a profit in the future.
These are their main tasks:
- Making decisions about the direction and the future of the company alongside the board
- Making sure that the company’s resources are being used to meet these strategic goals
- Being the point of contact between the business and the board
- Being the public face of the company, for example by speaking to the press
However, their tasks can vary from company to company, and depend on the instructions of the board, the rules and regulations of the industry the company operates in, as well as the needs of the organization.
They’re responsible for the business decisions that are taken by the company.
What background should a CEO have?
To get hired as a CEO, a person should have a long background in the industry—and a good network—as well as leadership experience. They should have both a BA and an MA in relevant fields, such as a master in business administration (MBA).
They should also have a strategic mindset, and be resilient and adaptable.