A chief executive officer (CEO) is the highest-ranking executive in a company. Broadly speaking, a chief executive officer’s primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors and corporate operations. In many cases, the chief executive officer serves as the public face of the company. 

The CEO is elected by the board and its shareholders. They report to the chair and the board, who are appointed by shareholders. 

• The chief executive officer (CEO) is the highest-ranking person in a company.

• While every company differs, CEOs are often responsible for expanding the company, driving profitability, and in the case of public companies, improving share prices. CEOs manage the overall operations of a company.

• Across many companies, CEOs are elected by the board of directors.

• CEOs of the 350 largest companies in America earn on average $24 million, or 351 times more than an average employee.

• Studies suggest that 45% of company performance is influenced by the CEO, while others show that they affect 15% of the variance in profitability.

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A CEO's role varies from one company to another depending on the company's size, culture, and corporate structure. In large corporations, CEOs typically deal only with very high-level strategic decisions and those that direct the company's overall growth. For example, CEOs may work on strategy, organization, and culture. Specifically, they may look at how capital is allocated across the firm, or how to build teams to succeed. 

In smaller companies, CEOs often are more hands-on and involved with day-to-day functions. 

One study from Harvard Business review analyzed how CEOs spend their time. They found that 72% of CEOs' time was spent in meetings versus 28% alone. Moreover, 25% was spent on relationships, 25% on business unit review and functional reviews, 21% on strategy, and 16% on culture and organization. Some food for thought: the study showed that just 1% of time was spent on crisis management and 3% was allocated to customer relations.1

Not only that, CEOs can set the tone, vision, and sometimes the culture of their organizations. 

On average, CEOs of the 350 largest companies in the U.S. have earned $24 million in annual salaries. To look at it another way, that's 351 times the salary of a worker. Since the 1970s, CEO pay is estimated to have skyrocketed over 1,300%. By contrast, worker compensation has grown 18%.2 

Because of their frequent dealings with the public, sometimes the chief executive officers of large corporations achieve fame. As of Feb. 9, 2022, Elon Musk, founder of Tesla (TSLA) has over 73 million followers on Twitter.3 Similarly, Steve Jobs, founder and CEO of Apple (AAPL), became such a global icon that following his death in 2011, an explosion of both cinematic and documentary films about him emerged.

Corporate America houses numerous titles of senior executives that begin with the letter C, for "chief." This group of top senior staffers has come to be called C-suite, or C-level in the corporate vernacular.

It's worth noting that for small organizations or those that are still in the startup or growth phases, for example, the CEO may also be serving as the CFO and the chief operating officer (COO), and so on. This can lead to a lack of clarity, not to mention an overworked executive. Assigning multiple titles to a single executive-level individual can wreak havoc on a business's continuity and ultimately may affect its long-term profitability negatively. In short, when it comes to executive-level positions within an organization, assigned titles and the functions associated with each can become muddled quickly. 

The CEO directs the operational aspects of a company. Comparatively, the board of directors—led by the chair of the board (COB)—oversees the company as a whole. While the chair of the board does not have the power to overrule the board, the board has the power to overrule the CEO's decisions. Effectively, the chair is considered a peer with the other board members. In some cases, the CEO and the chair of the board can be the same person, but many companies split these roles between two people.

The CFO is the chief financial officer of a company. While CEOs manage general operations, CFOs focus specifically on financial matters. A CFO analyzes a company's financial strengths and makes recommendations to improve financial weaknesses. The CFO also tracks cash flow and oversees a company's financial planning, such as investments and capital structures. Like CEOs, the CFO seeks to deliver returns to shareholders through focusing on financial discipline and driving margin and revenue growth.

A chief executive officer (CEO) is the highest-ranking executive in a company. Broadly speaking, a chief executive officer’s primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors and corporate operations. In many cases, the chief executive officer serves as the public face of the company. 

The CEO is elected by the board and its shareholders. They report to the chair and the board, who are appointed by shareholders. 

• The chief executive officer (CEO) is the highest-ranking person in a company.

• While every company differs, CEOs are often responsible for expanding the company, driving profitability, and in the case of public companies, improving share prices. CEOs manage the overall operations of a company.

• Across many companies, CEOs are elected by the board of directors.

• CEOs of the 350 largest companies in America earn on average $24 million, or 351 times more than an average employee.

• Studies suggest that 45% of company performance is influenced by the CEO, while others show that they affect 15% of the variance in profitability.

0 seconds of 1 minute, 58 secondsVolume 75%

1:58

A CEO's role varies from one company to another depending on the company's size, culture, and corporate structure. In large corporations, CEOs typically deal only with very high-level strategic decisions and those that direct the company's overall growth. For example, CEOs may work on strategy, organization, and culture. Specifically, they may look at how capital is allocated across the firm, or how to build teams to succeed. 

In smaller companies, CEOs often are more hands-on and involved with day-to-day functions. 

One study from Harvard Business review analyzed how CEOs spend their time. They found that 72% of CEOs' time was spent in meetings versus 28% alone. Moreover, 25% was spent on relationships, 25% on business unit review and functional reviews, 21% on strategy, and 16% on culture and organization. Some food for thought: the study showed that just 1% of time was spent on crisis management and 3% was allocated to customer relations.1

Not only that, CEOs can set the tone, vision, and sometimes the culture of their organizations. 

On average, CEOs of the 350 largest companies in the U.S. have earned $24 million in annual salaries. To look at it another way, that's 351 times the salary of a worker. Since the 1970s, CEO pay is estimated to have skyrocketed over 1,300%. By contrast, worker compensation has grown 18%.2 

Because of their frequent dealings with the public, sometimes the chief executive officers of large corporations achieve fame. As of Feb. 9, 2022, Elon Musk, founder of Tesla (TSLA) has over 73 million followers on Twitter.3 Similarly, Steve Jobs, founder and CEO of Apple (AAPL), became such a global icon that following his death in 2011, an explosion of both cinematic and documentary films about him emerged.

Corporate America houses numerous titles of senior executives that begin with the letter C, for "chief." This group of top senior staffers has come to be called C-suite, or C-level in the corporate vernacular.

It's worth noting that for small organizations or those that are still in the startup or growth phases, for example, the CEO may also be serving as the CFO and the chief operating officer (COO), and so on. This can lead to a lack of clarity, not to mention an overworked executive. Assigning multiple titles to a single executive-level individual can wreak havoc on a business's continuity and ultimately may affect its long-term profitability negatively. In short, when it comes to executive-level positions within an organization, assigned titles and the functions associated with each can become muddled quickly. 

The CEO directs the operational aspects of a company. Comparatively, the board of directors—led by the chair of the board (COB)—oversees the company as a whole. While the chair of the board does not have the power to overrule the board, the board has the power to overrule the CEO's decisions. Effectively, the chair is considered a peer with the other board members. In some cases, the CEO and the chair of the board can be the same person, but many companies split these roles between two people.

The CFO is the chief financial officer of a company. While CEOs manage general operations, CFOs focus specifically on financial matters. A CFO analyzes a company's financial strengths and makes recommendations to improve financial weaknesses. The CFO also tracks cash flow and oversees a company's financial planning, such as investments and capital structures. Like CEOs, the CFO seeks to deliver returns to shareholders through focusing on financial discipline and driving margin and revenue growth.