Full Form of CEO – Chief Executive Officer
The Full Form of CEO stands for Chief Executive Officer. He is the senior-most member, executive of the corporate organization. He is the only senior administrator who looks after the entire management and operations of an organization and reports directly to the board of directors and chairman of an organization with the sole objective of generating wealth for its stakeholders and shareholders. The chief executive officer is the head of any corporate organization, public, private or non-government organization.
Educational Qualification Required to Become a CEO
The required educational qualification of the CEO depends on the industry and employer he is working with. Employers gave preferences to those who are graduates and have considerable work experience in the required industry. Very often Chief Executive Officer is selected from within the company instead of hiring from outside. Following are the two major considerations being envisaged while selecting the CEO:
- Training: There are companies that require the CEO to under training before they are boarded as Chief Executive Officer. Training could be related to executive development, leadership, and ongoing professional skills and development.
- Relevant Experience: They are expected to carry a considerable relevant experience with them. The board of directors usually prefers CEO with progressive and sustainable performance and responsibility.
There is no specific qualification as such to become a CEO. At the very outset of the 21st century, most of the CEOs used to have degrees in technical subjects like science, law, engineering finance, etc. To describe the explicit qualification to become a CEO is a complex subject in itself. To become a Chief Executive Officer the concerned person needs to have knowledge of each and every department in the organization he is heading though every department has their individual heads who directly report to the CEO. CEO should be at least professionally qualified in the subject of the organization he is leading.
Skills required to become a CEO vary from organization to organization but there are some basic and common skills set required for every Chief Executive Officer. The following are the skill requirement.
- He should have an entrepreneurial mind including outstanding management and leadership skills.
- He should be a great communicator who enjoys his work with minimum support and who enjoys working autonomously.
- He should be able to create insights and make decisions quickly.
- He should pick up new ideas very quickly and implement the same.
- He should create an environment so that people love working with him and he should work together to get the desired results from colleagues.
Responsibilities of CEO
The responsibilities of the CEO varies depends on the industry and it varies from organization to organization, its goals, products and services, and operational requirements. The roles and responsibilities are set up by the chairman and board of directors of an organization. The following are the basic responsibilities.
- CEOs should be able to make major decisions related to the management and administrations of the company.
- He should make sure the environment of the corporation is healthy and positive.
- CEO should lead the organization in such a way that he motivates his colleagues and every employee of the company.
- He should make sure that required changes are being made in policies and decisions if required.
- CEO should be able to lead the entire operations.
- CEOs should make sure that roles and responsibilities are adequately assigned to subordinates.
- Should oversee that fundraising planning and execution of the same has been implemented in a manner that benefits the organization and respective stakeholders.
- CEO should take part in every possible meeting of the board of directors and assist in the selection of members of the boards.
- CEO should oversee every department like production, marketing, finance and make sure that delivery and quality of goods and service is maintained.
- He should make sure that every resource in the organization should be used in the best possible way to generate the wealth of the respective shareholders.
- CEO should review and take part in the annual and interim budgets planning and make sure expenses are in line with budgeted expenditures.
- Last but not least he should make sure the products and services being developed by the corporation in line with the mission and vision of the organization as a whole.
According to the United States Bureau of Labor Statistics, the job opportunities for the CEO are expected to rise by 8% through 2026 which is relatively higher than the average employment growth rate of 7% across the various other industries in the united states.
Salaries of CEO
Chief executive officers have been consistently outpacing the average pay of working professionals. It has been observed that in the last 10 years the average pay of CEO of fortune 500 companies have increased by more than $0.5 Million to $14.5 Million in the year 2018. In other case wages of workers and non-supervisory nature of jobs have witnessed an increase of $800 a year and a yearly income of $39,950 in the year 2018.
The median salary of Chief Executive Officer of fortune 500 companies is circa $10.5 Million according to the survey conducted by Stanford University’s Rock school for corporate governance.
The salary of the average CEO depends on industry, location, experience and the kind of employer he is working with. According to United States Bureau of Labor Statistics average salary of CEO across the United States are:
- Annual Median Salary is $186,600.
- Annual Top 10% Salary: $208,000
- Annual bottom 10% Salary: 68,360
In concluding mark, we could state that CEO is the person who has the overall responsibility of leading the organization by providing vision, creating, planning, and implementing the strategic decisions towards achieving the common objectives generating the wealth for respective stakeholders. It is the Chief Executive Officer who assures that the organization’s leadership creates awareness among the internal as well as internal competitive environment including the opportunities for mergers and acquisitions, increasing the customer’s base, markets, and potential new industries.
The normal working environment of the CEO depends on various factors like industry, location, size of an organization, etc. Top fortune 500 companies Chief Executive Officer job normally works for around more than 40 hours per week which could include sometimes working on weekends and very often require to travel and even work on holidays.
Top CEOs are working and employed in every industry in today’s corporate world even if the business is small or big it doesn’t matter. Without regard to the industry, the Chief Executive Officer is working the nature of the work of every CEO is of very stressful and face pressure the reason being they are the only who is responsible for the bottom line of the company.
This has been a guide to the Full Form of CEO i.e (Chief Executive Officer) and its definition. Here we learn the education qualification and skills required to become a CEO, responsibilities and job opportunities of Chief Executive Officer along with its Salaries. You may refer to the following articles to learn more about finance –