CEO stands for Chief Executive Officer — the top executive responsible for a company's overall direction and performance. Here is what the role actually involves and how it fits a company's structure.
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What a CEO Does
- Sets strategy and vision.
- Makes the final major decisions.
- Represents the company to investors, boards and the public.
- Builds and leads the executive team.
- Owns overall performance and accountability.
CEO vs Other Executives
The CEO reports to the Board of Directors; COO (operations), CFO (finance) and CTO (technology) report to the CEO and run their functions.
What Makes a Great CEO
Clarity, communication, judgement under uncertainty and the ability to build teams — not just technical mastery. Great CEOs align every function toward a coherent strategy.
FAQ
Is the CEO the same as the owner?
Not always — owners may hire a CEO; the CEO is the executive role, not necessarily ownership.
Who is above the CEO?
The Board of Directors and, ultimately, shareholders.
Related: Organization Defined and Nature of a Business.