Chief Executive Officer Job Description

The executive at the top of a company’s organizational chart is usually quite influential in directing its strategies, establishing its culture and values, and guiding it to success. Although this individual, often known as the chief executive officer (CEO), can have an outsize impact, their responsibilities can vary. The chief executive officer job description shifts based on the size and type of organization, leadership structure, and industry.

Becoming a CEO can be challenging, but pursuing an advanced degree, such as a Master of Arts in Organizational Leadership, and gaining extensive workplace experience can give professionals a strong foundation. With the right training and background, skilled leaders can make a positive difference, influencing the future of their organizations and their impact on the world.

What Does a CEO Do?

While some businesses use different titles for the top executive, CEO is the most common title. In larger organizations, CEOs typically work with a board of directors to decide on operational direction and business strategy. CEOs may have several other top executives, including a president, who report to them and help oversee operations.

CEOs look at the big picture and oversee plans that affect an organization’s long-term direction. By setting goals and allocating resources, CEOs can directly influence an organization’s financial performance.

CEO Duties and Responsibilities

The CEO role takes different forms depending on the company. Generally, it involves overseeing the company as a whole rather than direct involvement in individual projects,  monitoring the progress of different departments, and making strategic decisions. This can involve using organizational leadership skills, such as strategic thinking, delegation, and interpersonal skills. Many CEOs spend a significant amount of their time in meetings.

The duties and responsibilities likely found in a chief executive officer’s job description include the following:

• Driving a company’s profitability and increasing its overall value or profit share
• Determining how to allocate resources within the business
• Exemplifying the company’s workplace culture and values
• Communicating with other leaders
• Monitoring the company’s progress and making strategic decisions to improve results
• Participating in public relations and media as a representative of the company

In many of the world’s largest corporations, the CEO directs how financing, human resources, product development, marketing, and other functions will operate, delegating to executives, directors, and managers. Within smaller companies, however, a CEO may take on a more hands-on approach to day-to-day operations, actively participating in projects and activities.

How to Become a CEO

CEOs may be selected from various backgrounds. In some cases, CEOs are individuals who’ve dedicated themselves to a company and worked their way from the ground up. In others, they may have been among the company’s founders. Typically, however, they’re candidates with formal education and extensive work experience who’ve built up a proven track record in business. Top executives generally require a bachelor’s degree, according to the U.S. Bureau of Labor Statistics (BLS), with many holding a master’s degree.

Part of a chief executive officer’s job description involves making tough decisions, which can have a long-term influence on a company’s future. Selecting the right CEO depends on the business needs and a candidate’s experience and qualifications. Considerations may include a candidate’s industry expertise, reputation, and track record of success in similar organizations.

Whether a business is profitable and looking to grow or struggling and needing to explore new strategies, turning to a CEO who can act as an organizational development consultant can provide it with the leadership it needs to succeed.

CEO Salary and Career Outlook

While companies and organizations across all industries need leadership and top executives for their business to function, the CEO role generally only goes to one person. The exclusivity of being selected for a top executive role makes earning the title of CEO highly competitive.

Not only does the chief executive officer’s job description vary based on the size, type, and industry of the organization, but the position’s salary also varies. The largest corporations in the world typically have much larger budgets for top executives than small, independently owned businesses.

According to the BLS, the median annual salary for chief executives was $206,680 as of May 2023. For top executives — including CEOs, various types of managers, and school superintendents and college/university presidents — the median pay was $103,840. CEO salaries also vary based on the candidate’s level of education, work experience, and location.

The BLS projects the growth rate for top executive positions to be about 6% from 2023 to 2033. That’s slightly higher than the average growth rate for all occupations of 4%.

Make a Difference in Leadership as a CEO

Ascending to the CEO role can be considered among a business leader’s most significant achievements. While the specific duties found in a chief executive officer’s job description may vary, the role is generally instrumental in an organization’s direction and level of success.

Professionals looking to make a significant impact in the business world and lead their organizations toward positive social change should consider obtaining an advanced degree. The Master of Arts in Organizational Leadership from Claremont Lincoln University is a fully online program, allowing students to pursue concentrations in healthcare, human resources, management, professional studies, or sustainability. The program covers leadership theory but focuses on practical applications.

Discover how CLU can help you pursue a fulfilling career in business leadership.