by Being a leader, a manager, and a representative of the corporation are essential features of a CEO.
To perform their duties, a CEO has to be able to handle the management team, directors, employees, competitors, other businesses, as well as government and public officials.
In the description below, you will find details on the experience, skills, education, and other factors the CEO needs.
Article Table of Contents
What Does a CEO Do
The duties of a CEO include establishing goals and strategy of the organization and means to achieve them.
Since the organizations are different on many levels, the duties of a chief executive officer differ accordingly.
CEOs often have to sit through the interviews with the reporters discussing or promoting services, events, or products of the corporation.
Responsibilities
- Manage and monitor the production, provision of services, and other activities of the organization.
- Implement practices and policies of the organization.
- Negotiate and conclude deals and transactions on behalf of the organization.
- Report to the board of directors on the condition, performance, potential adverse matters and other issues of the company.
- Appoint the leaders of divisions or departments.
- Evaluate the performance of the company and its departments.
The job of a CEO can vary depending on the size and type of the company.
For instance, in a small store or independent shop, the CEO monitors everyday activities, such as purchasing supplies or inventory and making decisions on personnel.
In larger companies, HRs or general managers deal with those issues while CEOs handle broader issues of financial performance goals and strategies, or vision of the company.
In non-profit organizations, CEOs deal with fundraising and advocacy.
Essential Skills
Communication:
A CEO is the voice of a corporation.
They may appear in court, before other bodies, on media platforms, and in public.
They should speak confidently and persuasively to negotiate and advocate for the organization.
They should also clearly convey the vision and goals of subordinates.
Besides, they report to the board of directors.
Management:
A CEO creates and monitors the activities of the corporation and its staff.
While deciding on policies and actions, CEOs may consult with other management, legal counsel, directors, or stakeholders.
They should also be able to lead the organization, providing a clear vision and directions, and dealing with crises.
Time-management:
CEOs have various commitments such as meetings, media interviews, public appearances, etc.
They should stick to deadlines, especially if they are imposed by law, to prevent the corporation from encountering liability.
While managing time efficiently, they may also delegate tasks to others.
How to Become a CEO
Depending on organizations and sectors, the required qualifications to become a CEO can be different.
The level of the corporation and its activities determines the education and experience a CEO may need.
Training and Qualifications
Generally, in the business world, CEOs should hold at least a Bachelor’s of Science in Administration.
Many CEOs have a Master’s in Business Administration, especially in larger organizations.
The programs of such degrees cover organizational structure and behavior, finance, marketing, taxation, and accounting.
Some corporations require their CEOs to have a legal education and maybe even have a license to practice law.
Often, CEOs are expected to hold degrees in business areas such as banking or manufacturing.
The CEOs in the public sector typically hold degrees in public administration, law, or business administration.
The CEO-type roles such as college presidents and school superintendents require majors in education with undergraduate or graduate degrees.
Experience
To become a CEO, one needs the extended work experience in management, staring from lower-management, and climbing up the corporate ladder.
Typically, companies choose CEOs among their own employees because, with the experience in the company, they are already familiar with the activities and corporate culture.
However, some companies hire people from outside, seeking experience in the line of corporation work.
Working Hours
The Bureau of Labor Statistics reports that in 2014, the CEOs worked over 40 hours a week.
CEOs may have to work outside the office quite often.
For example, they may need to justify before the juridical bodies to respond to concerns by lawmakers or claims of wrongdoing.
Also, CEOs may have to participate in business and news shows, including the early morning ones.
CEOs also have to attend the meetings of directors and stakeholders.
Additionally, they may have to visit the properties of the organization and other places of business.
Career Outlook
According to the BLS, the number of positions for CEOs is expected to decrease by 4,100 by 2024.
Also, CEOs hold their positions for a long time.
When the job opening becomes available, companies usually select candidates with considerable experience in management or even CEOs from other organizations.
Therefore, new openings depend on the establishment of new corporations.
The economic conditions tend to deprive young professionals and entrepreneurs of the desire to organize new ventures.
As of May 2015, the average salary of CEOs was $185,550.
One-quarter of them made as much as $187,200.
The highest salaries are reported to exist for taxi and limousine services CEOs, with $253,570 per year.
Other high-ranking sectors include Securities and Commodities Exchange Brokerage, Pipeline Transportation of Natural Gas, and Computer and Peripheral Equipment Manufacturing.
CEOs of large corporations make more than CEOs of nonprofits.
The nonprofit CEOs may have a restricted salary limited by the budgets.
Usually, they rely on donations and grants.
Conclusion
CEOs are responsible for leading and guiding their organizations.
They need education, skills, and experience to be selected for the position by the board.
New openings rarely appear since the number of positions depends on the number of corporations.