Chief executive officer

Chief executive officer

Overview
A chief executive officer (CEO, American English
American English
American English is a set of dialects of the English language used mostly in the United States. Approximately two-thirds of the world's native speakers of English live in the United States....

), managing director (MD, British English
British English
British English, or English , is the broad term used to distinguish the forms of the English language used in the United Kingdom from forms used elsewhere...

), Executive Director
Executive director
Executive director is a term sometimes applied to the chief executive officer or managing director of an organization, company, or corporation. It is widely used in North American non-profit organizations, though in recent decades many U.S. nonprofits have adopted the title "President/CEO"...

(ED, American English
American English
American English is a set of dialects of the English language used mostly in the United States. Approximately two-thirds of the world's native speakers of English live in the United States....

) for non-profit organizations, or chief executive is the highest-ranking corporate officer
Corporate title
Publicly and privately held for-profit corporations confer corporate titles or business titles on company officials as a means of identifying their function in the organization...

 (executive
Senior management
Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by...

) or administrator in charge of total management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

 of an organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...

. An individual appointed as a CEO of a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

, company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

, organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...

, or agency
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...

 typically reports to the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

.

The responsibilities of an organization's CEO (US) or MD (UK) are set by the organization's board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 or other authority, depending on the organization's legal structure.
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Encyclopedia
A chief executive officer (CEO, American English
American English
American English is a set of dialects of the English language used mostly in the United States. Approximately two-thirds of the world's native speakers of English live in the United States....

), managing director (MD, British English
British English
British English, or English , is the broad term used to distinguish the forms of the English language used in the United Kingdom from forms used elsewhere...

), Executive Director
Executive director
Executive director is a term sometimes applied to the chief executive officer or managing director of an organization, company, or corporation. It is widely used in North American non-profit organizations, though in recent decades many U.S. nonprofits have adopted the title "President/CEO"...

(ED, American English
American English
American English is a set of dialects of the English language used mostly in the United States. Approximately two-thirds of the world's native speakers of English live in the United States....

) for non-profit organizations, or chief executive is the highest-ranking corporate officer
Corporate title
Publicly and privately held for-profit corporations confer corporate titles or business titles on company officials as a means of identifying their function in the organization...

 (executive
Senior management
Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by...

) or administrator in charge of total management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

 of an organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...

. An individual appointed as a CEO of a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

, company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

, organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...

, or agency
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...

 typically reports to the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

.

Responsibilities


The responsibilities of an organization's CEO (US) or MD (UK) are set by the organization's board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 or other authority, depending on the organization's legal structure. They can be far-reaching or quite limited and are typically enshrined in a formal delegation of authority.

Typically, the CEO/MD has responsibilities as a communicator, decision maker, leader, and manager. The communicator role can involve the press and the rest of the outside world, as well as the organization's management and employees; the decision-making role involves high-level decisions about policy and strategy. As a leader, the CEO/MD advises the board of directors, motivates employees, and drives change within the organization. As a manager, the CEO/MD presides over the organization's day-to-day, month-to-month, and year-to-year operations.

International use


In some European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 countries, there are two separate boards, one executive board
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 for the day-to-day business and one supervisory board
Supervisory board
A supervisory board or supervisory committee, often called board of directors, is a group of individuals chosen by the stockholders of a company to promote their interests through the governance of the company and to hire and supervise the executive directors and CEO.Corporate governance varies...

 for control purposes (elected by the shareholders). In these countries, the CEO presides over the executive board and the chairman presides over the supervisory board, and these two roles will always be held by different people. This ensures a distinction between management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

 by the executive board and governance
Governance
Governance is the act of governing. It relates to decisions that define expectations, grant power, or verify performance. It consists of either a separate process or part of management or leadership processes...

 by the supervisory board. This allows for clear lines of authority. The aim is to prevent a conflict of interest and too much power being concentrated in the hands of one person. In the United States, the board of directors (elected by the shareholders) is often equivalent to the supervisory board, while the executive board may often be known as the executive committee (the division/subsidiary heads and C-level officers that report directly to the CEO).

In other parts of the world
World
World is a common name for the whole of human civilization, specifically human experience, history, or the human condition in general, worldwide, i.e. anywhere on Earth....

, such as Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...

, it is possible to have two or three CEOs in charge of one corporation. In the UK, many charities and government agencies are headed by a chief executive who answers to a board of trustees or board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

. In the UK, similar to a sizable percentage of public companies in the US, the chairman of the board in public companies is more senior than the chief executive (who is usually known as the managing director).

The following presents an alphabetical list of some international common terms for the CEO position:
(eg)Al-Ra'ees Al-Tanfizi / (sa)Al-Ra'ees Al-Tanfithee (Chief Executive)
  • Australia
    Australian English
    Australian English is the name given to the group of dialects spoken in Australia that form a major variety of the English language....

    : general manager (GM) (or also managing director (MD), but only when the executive officeholder is also a member of the board of directors) (Director General/GM/MD/CEO) Generalen direktor/Izpalnitelen direktor Shǒuxí zhíxíng guān/xíngzhèng zǒngcá (Chief Executive Officer) (administrating director) (Adm.Dir.) (general manager) (executive director) (executive director) (TJ) (chairman & chief executive) (P.D-G) (GmbH) or (AG) (General director) Diefthinon Symvoulos (Managing Director) Mankal/Menahel Klali (Director General)
  • Hindi
    Hindi
    Standard Hindi, or more precisely Modern Standard Hindi, also known as Manak Hindi , High Hindi, Nagari Hindi, and Literary Hindi, is a standardized and sanskritized register of the Hindustani language derived from the Khariboli dialect of Delhi...

    : Mukhya Karyapalan Adhikari
  • India
    Indian English
    Indian English is an umbrella term used to describe dialects of the English language spoken primarily in the Republic of India.As a result of British colonial rule until Indian independence in 1947 English is an official language of India and is widely used in both spoken and literary contexts...

    : CEO or managing director (MD) (Presdir/Dirut) (POF) (delegated administrator) (AD) Saikō-keiei-sekinin-sha (Chief Executive Officer) choe-go-gyeong-young-chek-ime-ja (Chief Executive Officer) (chairman of the board) (general director) (izvrshen direktor - executive director) or also (generalen direktor - general director) (Chief Executive) (administrating director) (adm. dir.) Modir Aamel (Chief Executive) Chif Igzikutu Afisr (Chief Executive Officer/Managing Director) (general director) (PCA) (generalnyi direktor – general director) (CEO / MD) (executive director) Chif Igzikutu Afisr (Chief Executive Officer)

In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, and in business, the executive officers are usually the top officers of a corporation, the chief executive officer (CEO) being the best-known type. The definition varies; for instance, the California Corporate Disclosure Act defines "Executive Officers" as the five most highly compensated officers not also sitting on the board of directors. In the case of a sole proprietorship, an executive officer is the sole proprietor. In the case of a partnership, an executive officer is a managing partner, senior partner, or administrative partner. In the case of a limited liability company, an executive officer is any member, manager, or officer.

Related positions


Typically, a CEO has several subordinate executives, each of whom has specific functional responsibilities.

Common associates include a chief business development officer
Chief Business Development Officer
A chief business development officer is a function within a company established beside the other executive functions like CEO or COO.The title is used to define a high ranking position alongside the CEO...

 (CBDO), chief financial officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...

 (CFO), chief operating officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...

 (COO), chief marketing officer
Chief marketing officer
Chief Marketing Officer is a corporate title referring to an executive responsible for various marketing activities in an organization...

 (CMO), chief information officer
Chief information officer
Chief information officer , or information technology director, is a job title commonly given to the most senior executive in an enterprise responsible for the information technology and computer systems that support enterprise goals...

 (CIO), chief communications officer
Chief communications officer
The chief communications officer is a job title for the head of communications, public relations, and/or public affairs within an organization...

 (CCO), chief legal officer
Chief Legal Officer
A chief legal officer is the highest-ranking corporate officer concerning legal affairs of a corporation or agency. Chief legal officers typically hold the title of general counsel.- Skill requirements :...

 (CLO), chief technology officer (CTO), chief risk officer
Chief risk officer
The chief risk officer or chief risk management officer of a corporation is the executive accountable for enabling the efficient and effective governance of significant risks, and related opportunities, to a business and its various segments. Risks are commonly categorized as strategic,...

 (CRO), chief creative officer
Chief creative officer
A chief creative officer is the highest ranking position of the creative team within a company. This position is responsible for the overall look and feel of all materials, media, and branding associated with the organization...

 (CCO), chief compliance officer
Chief compliance officer
The chief compliance officer of a company is the officer primarily responsible for overseeing and managing compliance issues within an organization...

 (CCO), chief audit executive
Chief Audit Executive
The Chief Audit Executive , Director of Audit, Director of Internal Audit, Auditor General, or Controller General is a high level independent corporate executive with overall responsibility for the Internal audit....

 (CAE), chief diversity officer
Chief diversity officer
The chief diversity officer or CDO is an organization’s executive level diversity and inclusion strategist. According to journalist Bill Picture, about 20% percent of Fortune 500 companies employ diversity officers . Steve O...

 (CDO), or chief human resources officer
Chief human resources officer
A Chief Human Resources Officer is a corporate officer who oversees all HR and industrial relations operations for an organization. Similar job titles include: Chief People Officer, Chief Personnel Officer, Executive Vice President of Human Resources and Senior Vice President of Human Resources...

 (CHRO).

Hospitals and healthcare organizations also often include a chief medical officer
Chief Medical Officer
There are four Chief Medical Officers in the United Kingdom who are appointed to advise their respective governments on health related matters: Her Majesty's Government, the Northern Ireland Executive, the Scottish Government and the Welsh Assembly Government...

 (CMO), a chief nursing officer (CNO), and a chief medical informatics officer
Chief Medical Informatics Officer
A chief medical informatics officer is a healthcare executive generally responsible for the health informatics platform required to work with clinical IT staff to support the efficient design, implementation, and use of health technology within a healthcare organization.Typically the CMIO is a...

 (CMIO).

In the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 the term 'director' is used instead of 'chief officer'. Associates include the audit executive, business development director, chief executive, compliance director, creative director, director of communications, diversity director, financial director, human resources director, information technology director, legal affairs director, managing director (MD), marketing director, operations director and technical director.

See also

  • CEO succession
    CEO succession
    CEO succession refers to a series of changes in CEO in a firm over time.-General:CEO succession refers to the CEO transitions that take place in a firm. It is a firm process of changes in the CEOs over time. Changing the head of an enterprise impacts company culture, board/CEO relations, and...

  • Executive officer
    Executive officer
    An executive officer is generally a person responsible for running an organization, although the exact nature of the role varies depending on the organization.-Administrative law:...

  • List of CEO books
  • List of chief executive officers
  • O*NET
  • Oldest CEOs
    Oldest CEOs
    The average age of a CEO in the United States is 56, while the average retirement age is 62. This, coupled with the fact that the life expectancy of the average person is almost 79 years, makes the accomplishments of the following individuals truly noteworthy....

  • United States Department of Labor
    United States Department of Labor
    The United States Department of Labor is a Cabinet department of the United States government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, re-employment services, and some economic statistics. Many U.S. states also have such departments. The...


External links