Chief executive officer
From Free net encyclopedia
- For other uses, see Chief Executive (disambiguation)
A chief executive officer (CEO) or chief executive is the highest-ranking corporate officer or executive officer of a corporation, company, or agency.
In the United States the CEO may also be the chairman of the board or the company president in small businesses, but these roles are often separated in larger organizations, to prevent the company from becoming dominated by a single personality, and to prevent a conflict of interest against the owners (the shareholders). Often, one person shares the chairman and CEO titles while another takes on the president and COO titles. Regardless, in virtually all cases where the CEO and president are not the same person, the CEO is of the higher rank.
In the European Union 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). Thus, the chief executive and the chairman of the board will always be different people. This ensures a distinction between governance and management and 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 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.
The term "Chief Executive" is also sometimes used to refer to the politician who is the active ruler of a nation, in circumstances where the titles are not clear. For example, in Israel the Prime Minister of Israel is the nation's chief executive, while the President of Israel is not. In Pakistan General Pervez Musharraf held the title of Chief Executive before becoming the President.
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What makes a good CEO
A truly competent CEO is a visionary who can spot business opportunities when he or she sees them. Good CEOs are characterized by resolute decision-making and leadership qualities so as to provide guidances and directions for the whole company. Quantitative skills, on the other hand, are less important for this position (unlike CFOs). In addition, excellent communication and public relations skills are particuarly important for CEOs of major multinational corporations.
See also
- Corporate officer
- Corporate title
- Chief financial officer
- Chief analytics officer
- Chief information officer
- Chief networking officer
- Chief data officer
- Chief operating officer
- Chief technical officer
- Corporate governance
- Executive compensation
- Managing director
Lists
External links
- Coryphaeus CEO Curriculum at the Thierry Graduate School of Leadership
- Chief Executive Officer and Corporate Governance
- The Basics of Corporate Structure
- The Chief Executive Leadership Institute at the Yale School of Management
- Yale Center for Corporate Governance & Performance at the Yale School of Management
Magazines
Compensation
Video
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