What is a CEO (Chief Executive Officer)?
A CEO stands for Chief Executive Officer, who is the highest-ranking person in a company or organization.
The CEO is the person who responsible for the complete success of a business entity or other organization and for most important and top-level managerial decisions.
To Answer a simple question as What Does CEO Stand for is basically as Chief Executive Officer.
They might be asked for input on major decisions, but they are ultimately the authority for making final decisions. There are other titles for CEOs like chief executive, president, and even managing director.
The Chief Executive Officer also reports directly to and is accountable to the Board of Directors for the company’s performance.
The Board of Directors (BOD) consist of the group of individuals who are elected to represent the company’s shareholders. The CEO often take place on the board and, in some cases, they are also the chairperson.
Responsibilities and various roles of the CEO
In addition to the complete success of an organization or company, the CEO is responsible for developing and executing long-term strategies to increase shareholder value.
The responsibilities and roles of a CEO may vary from one company to another, often depending on the organizational structure and size of the company. In small companies, the CEO also takes on a more “hands-on role,” such as making lower-level business decisions (e.g., hiring staff).
Larger companies takes interest in only dealing with high-level corporate strategy and major company decisions. Other tasks have been assigned to managers or departments.
There is no systematic list of responsibilities and the role of a chief executive officer. The typical responsibilities, duties and job description of a CEO includes:
- On behalf of the company, communicating with shareholders, government entities, and the public.
- Leads into the development of any company’s short- term and a long-term strategy.
- Implementing and creating the company or organization’s mission and vision.
- Evaluation of the work of other executive leaders within the company, which includes directors and Presidents, Vice presidents and Directors.
- Maintenance of awareness of the competitive market expansion opportunities, landscapes, industry developments, etc.
- Ensuring that the company is maintaining higher social responsibility wherever it does business.
- Assessing any risks to the company and by ensuring they are been monitored and minimized.
- Setting a strategic goals and a making sure they are measurable and describable.
Knowing better about the Chief Executive Officers
A CEO’s role can vary from one company to another company. It depends on the company’s culture, size and corporate structure.
Typically, in larger corporations, CEOs only deals with very higher-level of strategic decisions and those that are directing the company’s complete growth.
In smaller companies, CEOs are often more hands-on and involve themselves in all day-to-day functions. CEOs can set the vision, tone and sometimes the culture of their respected organizations.
Because of their recurrent dealings with the public, sometimes the chief executive officers of large corporations become famous.
For e.g., Mark Zuckerberg, the CEO of Facebook (FB), it is a household name today. Similarly, Steve Jobs, the founder and Tim Cook as the CEO of Apple (AAPL), became such a global icon that following his death in 2011, an explosion of documentary films about him emerged.
Normal Corporate Structure of a Company
For looking after the interests of shareholders in equity, many firms also adopts a two-tier corporate hierarchy – the first tier being the Board of Directors and the second tier being the company’s upper management (COO, CEO, CFO).
Elected by shareholders is the Board of Directors – the ultimately governing authority of the company. The Board of Directors also have the authority to select the Chairperson and CEO.
With the certain recommendations of the CEO, the Board of Directors also elects the COO – Chief Operating Officer – and CFO – Chief Financial Officer.
Related Chief Positions
Corporate America houses as a numerous senior type of executives’ titles that has begin with the letter C, for “chief.” In the vernacular, this type of group of top senior staffers has come to be called C-suite, or C-level.
Confusion of C-Level
When it comes for executing-level positions within an organization, which is assigned for titles and the functions which have been associated with each and can become muddled quickly.
For smaller organizations or those who are still in the start-up or growth phases, for example, the CEO may also be serving as the CFO and the chief operating officer (COO), and so on.
It can lead to a lack of clarity, it is not to mention as overworked executive. Assigning of multiple titles to a single executive-level individual who can wreak havoc on a business’s continuity and ultimately negatively affect its long-term profitability.
Difference between CEO and COB
The CEO can direct the operational aspects of a company; the board of directors who oversees the company as a whole, while the leader of the board is also known as the chair of the board (COB).
The board has the power for overruling the decision of CEO, but the chair of the board do not have the power for overruling the board.
Instead, the chair can be considered as a peer with the other board of members. In some cases, the CEO and the COB can be the same person, but many companies can even split these roles between two people.
Difference between CFO and CEO
The Chief financial officer is considered as CFO of a company. While CEOs can manage general operations, CFOs can focus specifically on financial matters.
A CFO analyses a company’s financial strengths and makes various recommendations for improving financial weaknesses. The CFO can also track cash flow and oversees a company’s financial planning, such as capital structures and investments.
The Impact of changing of a CEO
When a new CEO is taking over a company, the price of its stock can also change for any number of reasons. However, there are no positive correlations between the performance of a stock and the announcement of a new CEO.
However, a change in CEO can generally carries more downside risk than upside risk, particularly when it has not been planned.
A stock’s price could swing up or swing down, which is based on the market’s perception of the ability of new CEO to lead the company as spoken as an example.
Other factors for considering while investing in a stock that is undergoing a management that change by including the incoming agenda of CEO; whether there may be a shift in strategy of corporate for the worse; and how well the company’s C-suite is able to manage the phase of transition.
Investors also tend to be more comfortable with new CEOs who are already familiar with the dynamics of the company’s industry, and the specific challenges that the company may be facing.
Typically, investors will be assessing a new CEO’s in track record for just creating shareholder value. A CEO’s reputation could only be reflected in a areas like an the ability to mainly grow in market share, a reduce costs, or a expand into new markets. Some ask many times In a company what does CEO stand for in business ? the answer is it is for making company growth at next level.
Know how much is Senior Accountant Salary
What does CEO stand for in a company ?
CEO Stand in a company for just making company to next level. Growth of company depends on CEO. In a Company CEO is a person who gives direction to grow company to next level. Also solve all problems related to company Strategic operation.
President vs CEO
President is a Authority person and CEO is the person who execute and give the direction to company.
CEO Job description
CEO’s responsibility for providing financial, strategic and a operational type of leadership for a company and it will be closely coordinate with Management committee members and also work closely with Board of Directors and a senior leadership team. It should have Strong leadership ability and a Strategic mindset with the Professional business acumen. It should possess Excellent problem solving skills. It should also have excellent ability to lead from front and manage.
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