Roles and Responsibilities of Chief Executive Officer Other tasks in the company are handled by managers in various departments. However, in large companies, the CEOs are only tasked to deal with company's higher-level strategies, where they have an obligation of ensuring that they direct its general growth. This includes even a task such as the hiring of staff, a responsibility that rests with the human resource department in large companies. For instance, all business decisions including lower ones are made by him or her. In a relatively small-sized company, the CEO usually has more responsibilities on his shoulders. Generally, the CEOs roles in various companies vary depending on the overall structure of the company as well as the size of the company. The election of the CEO is usually done by the board members and the shareholders of the company. Also, it is worth noting that the CEO is usually a point of contact between the board of directors and the company's various departments. However, some companies may prefer to have a different person who is not a CEO to be the boards chairperson. In some companies, the CEO is also a board member, who mostly holds the chairpersons position. In other words, he or she is regarded to be the face of the company who represents it in the outside world. Therefore, in the case of a company's success or failure, this is the person who is held responsible for it. Most importantly, the CEO is the leader of any given firm. How these titles are used vary from one organization to the other and they all represent the most senior position in a company. Some companies instead of using the CEO title, they prefer using titles such as managing director, executive or president. Note that there are also other titles for CEOs. In other words, it is the most top-ranking position in any company structure. A person who holds this title in a company is regarded to be the most senior employee of that particular company. Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP What is a Chief Executive Officer?Ī chief executive officer is also known as a CEO refers to a position in a company or an organization that is most senior.
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