7 Important Roles and Responsibilities of a CEO

A Chief Executive Officer (CEO) is a high-ranking company executive either in a company or in a nonprofit making organization. They make important decisions on how the company will run on day-to-day operations. Chief Executive Officers are also involved in strategic decision-making that promotes the company’s growth. They are usually elected by the board of directors and shareholders.  They are therefore responsible for formulating policies, inspiring the organization's direction provision, analyzing markets, and focusing on other critical areas.

According to the US Bureau and labours Statistics, the role of the chief executive officer is to plan strategies and policies to ensure that the goals of the organization are met. They specifically establish and carry out  organizational and departmental policies, goals, and procedures. The chief executive also manages general activities related to providing services and making products. They always consult with other executives, board members, and staff about the  general operations. They are also responsible in  appointing department heads and managers, analyse financial statements, sales reports, and other performance indicators.

The Chief Executive Officer compensation includes salary, stock options, bonuses, and other perks. They may also receive tax holidays, financial counselling, and security details. Their travel allowance includes ground transportation  and also private jets.  Sometimes CEO’s are reimbursed for decorating their offices, according to digital defynd, there are 10 benefits offered to the CEO and they include:

1. Equity and stock options.
2. Performance bonuses.
3. Professional development opportunities.
4. Comprehensive health and wellness programs.
5. Flexible work arrangements.
6. Exclusive leadership retreats.
7. Advanced technology access.
8. Family care and education support.
9. Private health care concierge services.
10. Personal executive coaching.

We are now going to dive deeper into the roles and responsibilities of the chief executive officer as we have basic understanding of the role. This blog will be a great guide to those aspiring to become chief executive officers.

“Every time you make the hard, correct decision, you become a bit more courageous, and every time you make the easy, wrong decision, you become a bit more cowardly. If you are CEO, these choices will lead to a courageous or cowardly company.”

Co-Founder of Andreessen Horowitz and Opsware
Ben Horowitz

What Does a Chief Executive Officer Do?

A chief executive officer's primary role is making major corporate decisions, and acting as the main point of communication between corporate operations and the board of directors. In addition, they drive the resources and workforce of any company towards strategic goals. They serve as the public face of the company. The chief executive officers' roles vary depending on the size, culture, and corporate structure of the organization. They may be responsible for how the firm allocates its capital and builds up successful teams. They can also set the vision, tonne, and organizational culture.

Chief executive officers are required to have a business degree. This is important because they will attain skills in business leadership and management that are instrumental in this role. Relevant work experience is also a requirement to perform this role. It will take several years to develop leadership skills and also the essential knowledge to be successful in this position.

A CEO is required to have networks. Having contacts and relationship development throughout this career is very important. This can be attained through such events as conferences, seminars, and other mixers. They can also take advantage of online networking opportunities. Developing leadership skills is also very important to any CEO. This can be achieved by learning continuously and staying on top of industry trends, taking classes, and attending seminars.

The responsibilities of the chief executive officer cover a wide range of functions. They are responsible for providing the overall leadership and direction of the company. These roles include managing finances, and risks, attracting talents, developing strategies, representing the company, managing employees, driving growth, and making crucial decisions. The chief executive officers are required to have strong leadership skills, clear vision, effective communication skills, decisiveness, resilience, and the ability to embrace innovations.

A chief executive officer role career path can lead to other executive roles like becoming a member of the board, president, and chief operation officer or founder. According to Zippia the average salary of a chief executive officer is $192, 260. The growth rate is 6% and according to the ethnicity distribution whites make up 75.99% of the total CEOs found in the USA.

Asians are 7.9%, Hispanics or Latinos are 7.9%, Americans Indians, and Alaska natives are 0.65% and others are 3.9%. The gender distribution is that males make up 68.42% while females are 31.53%. The average age of a chief executive officer is 52 years.

The percentage of chief executive officers that have a bachelor's degree is 59.0%, a master's is 18.6% and an Associate degree is 10.6%. The most required skills for a CEO are financial management, customer service, and oversight. The leadership capability is the most important instrument for the position of the chief executive officer. A CEO needs to encourage and understand all the team members. They should learn from past experience, be able to take on new challenges and make efficient decisions in uncertain circumstances.

With the basic knowledge of the roles of a chief executive officer, we can now introduce the core business of this blog: The chief executive officer’s key role and responsibility.

Key Skills Required for a Chief Executive Officer

7 Key Roles and Responsibilities of a Chief Executive Officer

A chief executive officer is a top-ranking corporate official who manages the organization. He has roles in both public and private sectors and also in nonprofit organizations. The responsibilities of a CEO are set up by the board of directors or other relevant authorities. This depends solely on the company’s organizational structure.

It is important to carry out a performance review on the CEO. This is a systematic analysis of their contribution to the organization. This will involve the provision of feedback on the performance to ensure that the company’s objectives are achieved. It will also enable the CEO to identify training areas or other support that are required for them to succeed in their role. This will therefore build into a bigger picture over time and these reviews are not intended to replace immediate and regular feedback.

The following are the main responsibilities of Chief Executive Officer:

1. Setting Strategies

Setting strategies as a CEO is about painting a bold vision of the future and rallying the entire organization to bring it to life. It’s about crafting clear, actionable goals that inspire teams while keeping stakeholders aligned and excited about the journey ahead. Strategic leadership means being the architect of smart resource allocation, ensuring every dollar, hour, and talent is driving meaningful impact.

It’s also about fostering open, transparent communication to build trust and unity, even in the face of challenges. Above all, it’s about making bold, decisive moves that propel the company forward balancing risks with opportunities to ensure innovation, resilience, and long-term success in a rapidly evolving world.

2. Making decisions

A Chief Executive Officer makes decisions for the company that affect its performance, success, and direction. They have ownership of the mission and vision of the company and for them to retain focus on these goals, they must make an informed decision. They perform this by making high-level decisions and setting strategy and vision. They also play the role of leading and guiding the management team and executive leadership. CEOs are also decision influencers and they do this by delegating effectively, being forward-thinking and flexible.

3. Managing resources.

The CEO does this by assigning resources to departments and projects of the company. They access the effort required for projects and in assigning appropriate resources. They also ensure that the resources are allocated effectively so that the goals of the organization are achieved. They are also responsible for managing the budgets and finances of the organization.

4. Managing relationships.

They do this by building productive relationships with the board of directors through clear communication and aligning with the goals of the organization. They work together to manage meetings, plan board agendas, and debriefing. They also keep relationships with the executive teams and the key customers. With the key customers sometimes it is advisable not to delegate their interactions to other team members.

5. Ensuring compliance

They do this by building productive relationships with the board of directors through clear communication and aligning with the goals of the organization. They work together to manage meetings, plan board agendas, and debrief. They also keep relationships with the executive teams and the key customers. With the key customers sometimes it is advisable not to delegate their interactions to other team members.

6. Creating a good work environment.

A chief executive officer sets precedence for the working culture and environment. He is responsible for setting up the tonne at the top and creating a positive working environment that will foster success. Employees always look to the CEO to maintain and develop a good working culture. They can perform these tasks effectively by expressing appreciation to all team members working with them.

Communicating clearly and compassionately involves managing emotions to handle conflicts and having a positive mindset on the people you disagree with. Creating and publishing a vision so that everyone is aware of and is aligned with the organization's vision and also establishing the company’s values and making sure that they are clear to all the stakeholders.

7. Being the public face

The chief executive officer is often the public face of a company and he does this through media relations. They usually participate in media relations such as conference speaking or addressing the public about the company’s notable changes. They may also participate in the community events,

Case Study: Success Story of Top CEO, their Challenges and Achievements

The case is taken from techtarget journals, and talks about the success story of Steve Jobs, a core founder of Apple. In 1976, he led a mission to contribute to society through making tools that advanced the human mind. Apple has been able to develop products like Macintosh computers, iPhones, and iPads together with other revolutionized digital music like iTunes.

Challenges: In 1990, the company was near bankruptcy because Mac clones had fallen tremendously in sales. Job had already left the company, but had to come back as the CEO. He set out by computer maker reinvention.

What transformed Apple?

The Apple company was transformed by Job through the following:

1. His ambitions and visions which he set out.
2. His dedication to all the team players.
3. Bringing about a transformative mind.

All of the above helped him to transform Apple into one of the world's most influential and successful companies till his death in 2011. His vision carriers in 2018 were able to make Apple become the first publicly traded US company, reaching $1 trillion in valuation.

Various Types of Chief Executive Officer

These are the common types of Chief executive officers:

Finance-Driven CEO

They are financially driven and they focus on the bottom line and providing shareholders value. They normally have a finance background and they work well with the chief finance officers. They have an in-depth understanding of the key value metrics that are associated with their respective industries.

Culture-driven CEOs

These are those who champion their team. They measure success through engagement as they focus on a solid team and a positive working environment. They are professional, personable, and approachable and they aim to create a positive working environment that is conducive to all team players.

CEO’s with International Mission

This type of CEO believes in corporate potential. They are normally driven by a personal mission of making significant differences as CEO and making the organization great is their passion. They are visionaries who can shoot the stars.

Company Representatives

They live for the organization. They are very hardworking and determined and they aim to become company ambassadors. They are usually global visionary and they also geopolitically operate and strive to transform industries.

Corporate Innovators

They normally focus on their personal mission. They have a unique, personalized reason for leading and are usually motivated by monetary gain. They normally have a large stake in the company making it their life. They always search for innovations and nothing can stop them from this.

Business Executives

They are the traditional CEO and are usually dedicated, and incredibly business-minded. They are motivated by the company’s success. Their actions are all directed toward the organization's benefit.

Frequently Asked Questions

In IT & Cyber Security, it will grow by 32% in the coming decades. In green energy, it will grow by 10% of GDP globally by 2032.

Conclusion

The chief executive officer is the main person that is responsible for managing the company. He is sometimes termed as the chairman of the board or the company’s president. He sets and executes the strategies of the organization, and this may include making decisions like generating a competitive edge, creating new product lines, looking into potential markets, and mitigation risks.

He is also responsible for building a senior leadership team by attracting top talents to an organization. This top leadership includes the chief finance officer (CFO), Chief Operating Officer (COO), etc.

Professionals aspiring to excel as CFOs must possess effective leadership communication skills. They must always venture into personal development and also be able to understand conflict management. Planning and team building is another important aspect of a CEO. Delegating other responsibilities to the juniors is also very important and involves mentoring them. They must also be adaptable and play teamwork roles. 

Corporate training providers like Edstellar can play a pivotal role in this journey. By offering cutting-edge solutions such as their Skill Matrix, Edstellar enables organizations to identify skill gaps, assess proficiencies, and design personalized learning pathways. This ensures CEOs and top management teams are equipped with the latest competencies in finance, marketing, and strategic management—empowering them to lead in an ever-changing business environment.