Chief executive officer (CEO)

Definition

A Chief Executive Officer (CEO) is the highest-ranking executive in a company, responsible for making major corporate decisions. The CEO acts as the main point of communication between the board of directors and corporate operations.

5 Must Know Facts For Your Next Test

1. The CEO sets the overall strategy and vision for the company.
2. They are accountable for the company's performance and profitability.
3. The CEO often represents the company in public, including to investors, customers, and regulatory bodies.
4. CEOs work closely with other top executives like CFOs and COOs to ensure all departments align with corporate goals.
5. A CEO's leadership style can significantly impact organizational culture and employee morale.

Review Questions

• What are two primary responsibilities of a CEO?
• How does a CEO interact with the board of directors?
• In what ways can a CEO influence company culture?

Related terms

CFO: Chief Financial Officer; responsible for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financial reporting.

COO: Chief Operating Officer; oversees daily operations within the company and ensures that business processes align with strategic goals.

Board of Directors: A group of individuals elected to represent shareholders and oversee activities and strategic direction of a company.