chief executive officer

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A chief executive officer (CEO) or chief executive is one of the highest-ranking corporate officers (executives) or administrators in charge of total management. An individual selected as president and CEO of a corporation, company, organization, or agency, reports to the board of directors. In internal communication and press releases, many companies capitalize the term and those of other high positions, even when they are not proper nouns.

International use

In some European Union countries, there are two separate boards, one executive board for the day-to-day business and one supervisory board for control purposes (elected by the shareholders). In these countries, the CEO presides over the executive board and the chairman presides over the supervisory board, and these two roles will always be held by different people. This ensures a distinction between management by the executive board and governance by the supervisory board. This allows for clear lines of authority. The aim is to prevent a conflict of interest and too much power being concentrated in the hands of one person. There is a strong parallel here with the structure of government, which tends to separate the political cabinet from the management civil service.

In other parts of the world, such as Asia, it is possible to have two or three CEOs in charge of one corporation. In the UK, many charities and government agencies are headed by a chief executive who is answerable to a board of trustees or board of directors. In the UK, similar to a sizable percentage of public companies in the US, the chair(man) (of the board) in public companies is more senior than the chief executive (who is usually known as the managing director). Most public companies now split the roles of chair and chief executive.

In France, a CEO/MD is known as the "PDG" (French: président directeur général); in Sweden, the CEO/MD is known as "VD" (Swedish: verkställande direktör); in Australia, the CEO can be known as the "MD" (managing director); in India, it is either Managing Director or CEO though CEOs are very common especially with the startup boom; in Pakistan it's called MD (Managing Director); in Spain, the usual name is "director general, the other mostly commonly used being "Consejero Delegado";" while in Italy, the position is called "AD" (Italian: amministratore delegato). In Denmark and Norway the CEO is known as the "administrerende direktør", abbr. adm.dir. And, in Malaysia it's also known as the CEO (Malay: Ketua Pegawai Eksekutif).

In the US, and in business, the executive officers are usually the top officers of a corporation, the chief executive officer (CEO) being the best-known type. The definition varies; for instance, the California Corporate Disclosure Act defines "executive officers" as the five most highly-compensated officers not also sitting on the board of directors. In the case of a sole proprietorship, an executive officer is the sole proprietor. In the case of a partnership, an executive officer is a managing partner, senior partner, or administrative partner. In the case of a limited liability company, an executive officer is any member, manager, or officer.

Structure

Typically, a CEO has several subordinate executives, each of whom has specific functional responsibilities.

Common associates includes a chief financial officer (CFO), chief operating officer (COO), chief technical officer (CTO), chief marketing officer (CMO), chief information officer (CIO), chief creative officer (CCO), chief compliance officer (CCO), and a director, or Vice-President of human resources.

See also

• List of chief executive officers
• List of CEO books
• Executive Officer
• CEO succession

References