The chief executive officer is the most important role in the management of an organization. This topic in the library does not go into great detail about each of the particular systems and practices managed by the chief executive officer because those systems and practices are explained in depth across many of the other topics in this library.

This library topic provides sufficient overview for the reader to gain basic perspective on the typical roles and responsibilities of the chief executive officer and how those responsibilities are typically met.

Sections of This Topic Include:

Gaining Broad Perspective on Role of Chief Executive Officer

What is the "Chief Executive Officer"? (includes definition and major roles of position)
What Do Chief Executive Officers Do? (includes major functions and example job descriptions)
Core Areas of Knowledge and Skills Required by Chief Executive Officers

Basics in Management and Leadership
Planning
Organizing
Leading
Coordinating Activities/Resources (including performance management)
Special Topics

CEO Development
Evaluating the CEO
Transitioning to New CEO (detailed procedure, contracts, etc.)
Other Miscellaneous Topics (board relations, executive pay, etc.)

Visit Basic Overview of Role of Chief Executive Web site

Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008.
Adapted from the Field Guide to Leadership and Supervision and Field Guide to Developing and Operating Your Nonprofit Board of Directors.

ABOU CHIEF EXECUTIVE:

CEO

In closely held corporations, it is general business culture that the office of Chief Executive Officer is also the Chairman of the Board. Specifically, one person often shares the Chairman and CEO titles while another person takes the presidency or may become chief operating officer (COO). However, the term president is from the U.S. whereas in the UK Managing Director (MD) is favored. Underneath that comes the Executive Vice President (U.S.) or Executive Director (UK). In publicly held corporations, the CEO and Chair positions can be separated but there are implications in corporate governance by doing so.

In some European Union countries, there are two separate boards, one executive board for the day-to-day business and one supervisory board for control purposes (elected by the shareholders). In these countries, the chief executive officer 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 by the executive board and governance 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. There is a strong parallel here with the structure of governments, which tend to separate the political cabinet from the management civil service.

In rare circumstances an Executive Chairperson can be appointed but this is either illegal in many jurisdictions or frowned upon by Regulators.

In the United Kingdom many Charities and Government Agencies are headed by a Chief Executive who is answerable to a Board of Trustees or Board of Directors. In the UK, the Chair (of the Board) in public companies is more senior than the Chief Executive. Most public companies now split the role of Chair and Chief Executive.

In France a CEO/MD is known as the "PDG" (Président Directeur Général), In Sweden the CEO/MD is known as "VD" (Verkställande Direktör), in Spain the usual name is "Director General", while in Italy it's called "AD" (which stands for Amministratore Delegato).

Reporting structure

Typically, a CEO has a cadre of subordinate executives, each of which has specific functional responsibilities. These direct reporting relationships most often include: Chief Financial Officer, Chief Operating Officer, Chief Marketing Officer, Chief Information Officer, and the Director of Human Resources.

However, depending on the industry in which the company operates and/or the organizational structure the company has employed, various other functional areas may be highlighted through the CEO's direct span of control. Some of these less common monikers include: Chief (Business) Development Officer, Chief Knowledge Officer, Chief Learning Officer, Chief Strategy Officer, Chief Risk Officer, Chief Innovation Process Officer, Chief Credit Officer, and Chief Creative Officer.

(From wikipedia, the free encyclopedia)

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