What does ceo stand for

What Does the Term CEO Stand for and What Exactly do They Do?

CEO stands for Chief Executive Officer. However, people who want to understand the role of the CEO need to understand the nature of the corporation. In short, a corporation is a kind of business that possesses its own independent existence, which is not something that can be said for either sole proprietorships or partnerships. As a result, the shareholders of a corporation elect some of their members to represent their interests as the Board of Directors, who serve as oversight for the corporation as a whole. However, the Board of Directors is not involved in running the operations of the corporation. Instead, it entrusts said duties and responsibilities to its chosen executives, with the CEO being the most important of them. At this point, it should be mentioned that CEOs are not forbidden from sitting on the Board of Directors. In fact, it is not uncommon for CEOs to serve as the Chairman of the Board, which is a setup that can have its fair share of potential upsides.

What Does a CEO Do?

Generally speaking, a CEO is supposed to have a number of important roles. First, they serve as the point of connection between the Board of Directors and the corporation’s operations. Second, they serve as the head of the corporation’s operations, being the one who chooses the corporation’s overall course of action while in consultation with other executives. Third, they are the leader of the corporation, meaning that they are responsible for motivating their employees as well as carrying out a wide range of other managerial tasks. Fourth, it is not uncommon for CEOs to serve as the point of contact between a corporation and the media, though this tends to be limited to the most important announcements because the rest can be entrusted to PR specialists. Summed up, CEOs can be entrusted with a wide range of duties and responsibilities because in the end, the exact demands placed upon the head of a corporation depends a great deal on how the corporation is set up.

How Much Difference Can There Be From One CEO to the Next?

To get a better idea of how much difference there can be from one CEO to the next, consider two CEOs put in charge of two corporations, with one being much bigger than the other. Theoretically, both CEOs might have very similar duties and responsibilities, but in practice, they can have very different tasks to complete as a result of those duties and responsibilities.

For example, the CEO in charge of the bigger corporation will have minimal contact with the situation on the ground. Simply put, it would be impossible because bigger corporations can encompass dozens and dozens of offices situated on multiple continents, meaning that it would be an ineffective and inefficient use of the CEO’s time for them to engage with those of their employees on the metaphorical frontline. Instead, the CEO’s main contact with said employees would be through other executives, who in turn, would be reliant on lower tiers of management to pass relevant information up to them. Summed up, the CEOs of bigger corporations are separated from the lowest tiers of the corporate hierarchy by a much greater distance, which is necessary because they are presiding over a much wider set of operations.

In contrast, it is not uncommon for the CEOs of smaller corporations to take an active hand in the day-to-day activities of the corporations that have been entrusted to them. Certainly, their primary focus remains the strategic movements of their corporation, which will be made based on the information fed to them by their executives. However, the flatter nature of the corporate hierarchy means that the CEO can engage with the employees towards the bottom without it being an inefficient use of their limited time, which in turn, means that they might make day-to-day decisions as well. CEOs of smaller corporations tend to have a much more solid grasp on their operations, but that isn’t an indication of their skill so much as an indication of the more manageable nature of their tasks.

With that said, no matter the exact nature of a CEO’s tasks, their role is critical. After all, they are ones who are in charge of their corporation’s overall plan for achieving its stated goals, which in turn, means that they are serving as the heads of their corporations in a very literal sense. As a result, it is no wonder that a change of CEO is often interpreted as a potential change of course for the corporation as a whole, which tends to makes investors twitch because of what that could mean for their expectations for the future.

Chief Executive Officer (CEO)

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Investopedia / Xiaojie Liu

What Is a Chief Executive Officer (CEO)?

A chief executive officer (CEO) is the highest-ranking executive in a company. Broadly speaking, a chief executive officer’s primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors and corporate operations. In many cases, the chief executive officer serves as the public face of the company.

The CEO is elected by the board and its shareholders. They report to the chair and the board, who are appointed by shareholders.

Key Takeaways

What CEOs Actually Do

Understanding Chief Executive Officers (CEOs)

A CEO’s role varies from one company to another depending on the company’s size, culture, and corporate structure. In large corporations, CEOs typically deal only with very high-level strategic decisions and those that direct the company’s overall growth. For example, CEOs may work on strategy, organization, and culture. Specifically, they may look at how capital is allocated across the firm, or how to build teams to succeed.

In smaller companies, CEOs often are more hands-on and involved with day-to-day functions.

One study from Harvard Business review analyzed how CEOs spend their time. They found that 72% of CEOs’ time was spent in meetings versus 28% alone. Moreover, 25% was spent on relationships, 25% on business unit review and functional reviews, 21% on strategy, and 16% on culture and organization. Some food for thought: the study showed that just 1% of time was spent on crisis management and 3% was allocated to customer relations.

Not only that, CEOs can set the tone, vision, and sometimes the culture of their organizations.

CEO Pay and Notoriety

Because of their frequent dealings with the public, sometimes the chief executive officers of large corporations achieve fame. As of Feb. 9, 2022, Elon Musk, founder of Tesla (TSLA) has over 73 million followers on Twitter. Similarly, Steve Jobs, founder and CEO of Apple (AAPL), became such a global icon that following his death in 2011, an explosion of both cinematic and documentary films about him emerged.

Related Chief Positions

Corporate America houses numerous titles of senior executives that begin with the letter C, for «chief.» This group of top senior staffers has come to be called C-suite, or C-level in the corporate vernacular.

It’s worth noting that for small organizations or those that are still in the startup or growth phases, for example, the CEO may also be serving as the CFO and the chief operating officer (COO), and so on. This can lead to a lack of clarity, not to mention an overworked executive. Assigning multiple titles to a single executive-level individual can wreak havoc on a business’s continuity and ultimately may affect its long-term profitability negatively. In short, when it comes to executive-level positions within an organization, assigned titles and the functions associated with each can become muddled quickly.

The Difference Between CEO and COB

The CEO directs the operational aspects of a company. Comparatively, the board of directors—led by the chair of the board (COB)—oversees the company as a whole. While the chair of the board does not have the power to overrule the board, the board has the power to overrule the CEO’s decisions. Effectively, the chair is considered a peer with the other board members. In some cases, the CEO and the chair of the board can be the same person, but many companies split these roles between two people.

The Difference Between CEO and CFO

The CFO is the chief financial officer of a company. While CEOs manage general operations, CFOs focus specifically on financial matters. A CFO analyzes a company’s financial strengths and makes recommendations to improve financial weaknesses. The CFO also tracks cash flow and oversees a company’s financial planning, such as investments and capital structures. Like CEOs, the CFO seeks to deliver returns to shareholders through focusing on financial discipline and driving margin and revenue growth.

The Difference Between CEO and COO

Often, the chief operating officer (COO) is ranked second highest after the CEO. As the head of human resources, their responsibilities fall on recruitment, legal, payroll, and training along with administrative duties.

The Difference Between CEO and Other Leadership Titles

There are many other leadership titles, some of which may or may not overlap with a CEO. Other common titles include:

Roles and Responsibilities

A Chief Executive Officer’s roles and responsibilities will vastly vary between companies, industries, and organization sizes. In general, a CEO may be expected to take on the following tasks:

The Impact of a CEO Change

During CEO transitions, markets can respond either positively or negatively to the change in company leadership. That makes sense, as studies show that CEOs may have a large impact on a company’s performance. For instance, one study found that 45% of company performance is influenced by the CEO. But on the flip side, another shows that CEOs affect just 15% of variance in profitability.

When a new CEO takes over a company, the price of its stock could change for any number of reasons. However, there is no positive correlation between a stock’s performance and the announcement of a new CEO, per se.

However, a change in CEO generally carries more downside risk than upside, particularly when it has not been planned. A stock’s price could swing up or down based on the market’s perception of the new CEO’s ability to lead the company, for example. Other factors to consider when investing in a stock that’s undergoing a management change include the incoming CEO’s agenda; whether there might be a shift in corporate strategy for the worse; and how well the company’s C-suite is managing the transition phase.

Investors tend to be more comfortable with new CEOs who are already familiar with the dynamics of the company’s industry, and the specific challenges that the company may be facing. Typically, investors will assess a new CEO’s track record for creating shareholder value. A CEO’s reputation could be reflected in areas like an ability to grow market share, reduce costs, or expand into new markets.

What Does a CEO Do?

CEOs are responsible for managing a company’s overall operations. This may include delegating and directing agendas, driving profitability, managing company organizational structure, strategy, and communicating with the board.

Does CEO Mean They Are the Owner of a Company?

It depends. In some cases, CEOs are the owners of a company. In others, CEOs are elected by the board of directors.

Is CEO or CFO Higher?

CEO is the highest position to occupy in a company. The CFO, who is responsible for the financial discipline of a company along with identifying the strengths and weaknesses of a company, ultimately reports to the CEO.

What Position Is Higher than CEO?

A CEO often reports to a board of directors. The board oversees the performance of the CEO and can elect to remove or replace the CEO if they feel the executive’s performance isn’t producing the results they want to see.

Должности C-level (CMO, CEO, CFO, CIO)

Аббревиатуры, которые обозначают названия руководящих корпоративных должностей и начинаются со слова Chief — это должности категории С-level, или руководящего уровня.

Кто такой CEO знают многие. Всё реже эту аббревиатуру путают с SEO. Однако в корпоративной иерархии существует множество должностей с похожими названиями, которые малопонятны непосвящённым людям. Рассмотрим некоторые из них и разберёмся, как правильно трактовать эти аббревиатуры.

Западные должности C-level: значение аббревиатур

Для начала разберём, как формируются аббревиатуры. Например, Chief *** Officer. Вместо звёздочек упоминается слово, связанное с непосредственной сферой деятельности — Marketing, Executive, Financial и т. д.

Если дословно перевести с английского языка получаем следующее:

Chief *** Officer — главный офицер по… маркетингу, исполнению, финансам. Преобразуем результат в термины, принятые в бизнес-сфере: главный офицер = высший руководитель = директор.

Соответственно, любые аббревиатуры типа Chief *** Officer расшифровывают как директор по… финансам, маркетингу или чему-то ещё.

Важное примечание! Организационные корпоративные структуры в разных странах часто не совпадают. Это важно учитывать при рекрутинге либо трудоустройстве. Например, западный технический директор (CTO) в русскоязычной трактовке просто главный инженер предприятия, а вовсе не руководитель высшего звена.

Что означает. Главный исполнительный директор (Chief Executive Officer).

Аналог на русском. Руководитель, генеральный директор. Должность CEO относится ко второму уровню управления — административному, который соответствует непосредственному управлению компанией и всеми руководителями. Он может одновременно входить в совет директоров предприятия, который выступает первым уровнем управления.

Обязанности. Определяет глобальную стратегию развития компании, принимает ключевые решения, представляет организацию во внешней среде.

Компетенции CEO — управление всеми сферами деятельности, поэтому он несёт полную законодательную ответственность за работу компании и её последствия.

Кому подчиняется. Высшее должностное лицо предприятия. Подчиняется совету директоров.

Что означает. Директор по маркетингу (Chief Marketing Officer).

Аналог на русском. Коммерческий директор либо руководитель из топ-менеджмента.

Обязанности. CMO определяет и утверждает маркетинговую стратегию компании. Он руководит деятельностью всех маркетинговых служб организации.

В перечень задач CMO входит запуск новых продуктов, управление продажами предприятия, маркетинговые исследования и коммуникации, управление дистрибуцией, обслуживание клиентов, планирование сервиса и ценообразование.

Кому подчиняется. CEO.

Что означает. Финансовый директор (Chief Financial Officer).

Аналог на русском. Финансовый директор или вице-президент по финансам. Финансового директора могут выбирать из состава совета директоров предприятия. Порой должность именуют иначе — Finance Director либо Treasurer (казначей). В небольших компаниях место финансового директора может занимать главный бухгалтер.

Обязанности. Отвечает за управление финансовыми потоками, бюджетное планирование и соответствующую отчётность. CFO заботится о финансовой устойчивости организации и разрабатывает финансовую политику предприятия. При этом финансовый директор принимает решения с учётом стратегии, целей и перспектив развития компании.

Кому подчиняется. Генеральному директору либо президенту компании.

Что означает. Главный бухгалтер (Chief Accounting Officer).

Аналог на русском. Главный бухгалтер или представитель топ-менеджмента, который отвечает за все аспекты бухгалтерского учёта.

Обязанности. Ведёт контроль за экономным и рациональным использованием всех ресурсов предприятия. Осуществляет деятельность по сохранению собственности компании, отчасти контролирует финансовое планирование.

Кому подчиняется. Генеральному директору.

Что означает. Директор по информатизации (Chief Information Officer).

Аналог на русском. ИТ-директор или заместитель генерального директора по ИТ. Из-за такого названия часто возникает путаница. В действительности CIO не связан непосредственно с ИТ-сферой, как разработчик или программист. Он не управляет техническим обеспечением, а занимается внедрением информационных технологий и их контролем.

Обязанности. CIO несёт ответственность за информационную сферу. Управляет информационными ресурсами и технологиями организации.

Кому подчиняется. Финансовому директору или CEO.

Что означает. Исполнительный директор (Chief Visionary Officer).

Аналог на русском. Стратегический директор или директор по развитию. Иногда занимает пост вице-президента. Зачастую состоит в совете директоров.

Обязанности. Руководит деятельностью предприятия в рамках, закреплённых договором — это могут быть отдельные сферы или всё в совокупности. Нередко основная обязанность CVO — создание планов экономического развития.

Кому подчиняется. Генеральному директору.

Что означает. Операционный директор (Chief Operating Officer).

Аналог на русском. Исполнительный директор. Руководитель организации, который отвечает за повседневные операции и текущую деятельность.

Обязанности. Контролирует эффективное использование инструментов оперативного менеджмента. Конкретные обязанности зависят от внутренних правил и структуры компании.

Кому подчиняется. CEO.

Что означает. Директор по безопасности (Chief Security Officer).

Аналог на русском. Руководитель, который отвечает за соблюдение безопасности компании в целом. При этом его работа охватывает практически все сферы деятельности компании.

Обязанности. CSO организует и обеспечивает физическую безопасность, кибербезопасность и иные виды безопасности в компании.

Кому подчиняется. CEO.

Что означает. Технический директор (Chief technology officer или Chief technical officer).

Аналог на русском. Главный инженер или руководитель, который отвечает за разработку и развитие новых продуктов.

Обязанности. Сфера компетенции — технологическая часть производства. Отвечает за создание и продвижение продукта с точки зрения организации технологических процессов.

Кому подчиняется. CEO.

Существуют и другие корпоративные должности с приставкой Chief: CDO (Chief Data Officer) или CRO (Chief Risk Officer). Принцип их расшифровки аналогичен: директор по… и смотрим, какая сфера деятельности указана в должности.

Необходимо учитывать, что идентичные аббревиатуры не всегда обозначают одно и то же. Например, CMO — это не только директор по маркетингу (Chief Marketing Officer), но и директор по медицине, или главврач (Chief Medical Officer). Если по контексту прослеживается явное расхождение с той трактовкой, которую вы знаете, уточните полную расшифровку, чтобы правильно перевести название должности.

Нужны ли в русскоязычном пространстве заимствованные наименования должностей

На фоне глобализации, развития технологий и усиления коммуникаций с иностранными партнёрами заимствования в корпоративной среде неизбежны. Уже практически никто не удивляется таким терминам, как «стартап», «комьюнити» или «франчайзер». Когда-то новые слова сегодня стали частью повседневной жизни. Они понятны и не требуют разъяснений в большинстве случаев.

Точно так же в деловое общение проникают иностранные буквенные аббревиатуры для идентификации руководства. Но проблема в том, что не все из них можно перевести так, чтобы релевантно соотнести с русскоязычными названиями должностей. Кроме того, таких заимствований много и запомнить их все сложно. Поэтому случается, что аббревиатуры применяют неправильно или трактуют неверно. Так может такие заимствования и не нужны в русскоязычной бизнес-среде? Определим преимущества и недостатки их использования.

Получается, необязательно отказываться от иностранных слов для обозначения руководства. Полезнее научиться применять их правильно. А для этого следует знать, как расшифровывать аббревиатуры.

В русскоязычных компаниях часто встречаются названия должностей на английском. Это происходит не только из-за стремления к большей солидности. Международные коммуникации на бизнес-уровне и коммерческое партнёрство с западными компаниями давно стали обыденностью. А с партнёрами гораздо проще разговаривать на одном языке.

What does CEO stand for?

What does CEO mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: CEO.

Chief Executive Officer

Catholic Education Office

Corporate Europe Observatory

Chief Ethics Officer

Collegiate Entrepreneurs’ Organization

Chief Engineering Officer

Chief Eating Officer

Chief Emotional Officer

Career Education Options

Constantly Evaluating Others

Children’s Education Opportunity

Community Education and Outreach

Creating Educational Opportunities

Chief Executing Officer

Creating Excellent Organizations

Chief Energy Officer

Chief Economic Officer

Christian Entrepreneur Organization

Christmas and Easter Only

Comprehensive Electronic Office

Career Education Opportunity

Creating Exceptional Opportunities

Chief Engagement Officer

Chief Evangelist Officer

Capacity Exposure Optimization

What does CEO mean?

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What Does the Term CEO Stand For?

Related

The acronym CEO stands for Chief Executive Officer, but what, really, is the role behind the letters? By definition, the CEO is the highest ranking executive in a business. It’s not a unique or exclusive title, because a CEO can be a member of the board or the owner of the company. To fully understand the CEO definition, you need to understand the nature of a corporation.

What Is a Corporation?

A corporation is a legal entity that structures a company into something beyond a sole proprietorship or partnership business structure. From a legal and taxation basis, a corporation has its own existence. Owners and executives working for a corporation may not have the same legal and financial responsibility attached to the company as sole proprietors or partners might. Of course, a corporation entity isn’t able to act of its own accord, so a board of directors typically provides oversight of company business activities. The board doesn’t usually involve itself with the day-to-day operations of the company. For that, they typically turn to the CEO.

The CEO Meaning and Definition

The CEO abbreviation is open to wide interpretation when it comes down to specific job duties. For example, in a smaller organization, the CEO may be the only executive officer of a company, handling all reporting, financial and sales oversight. A typical day may see this CEO addressing production concerns, purchasing, financing, human resources and customer service. A larger organization may be able to have people responsible for all those responsibilities and more. They, in turn, would report to their CEO, who might not actually have contact with daily operations.

No matter what the daily duties of the CEO may be, the position is typically placed between the board of directors and the employees of the company. Often the CEO is the «face» of the organization, whether he is a media spokesperson or not. While it’s not essential to the CEO meaning, many people consider the person in this position «the boss» of a business. The person carrying the CEO abbreviation doesn’t need to be the owner of the company or the chairman of the board, but these are often coincident roles. The CEO is, though, the name usually associated with control of a corporation.

Who Is Higher: CEO or Chairman?

Much depends on the particular structure of an organization, which may vary based on a company’s strategic goals, mission statement, industry, products or services. Generally, though, the board of directors reports to shareholders, who may be perceived as the ultimate «owners» of a corporation, though their ownership position may be limited by the percentage of shares they hold. Because it’s usually the board’s duty to hire the CEO, the chairman of the board may be the person to whom the CEO reports, though, as seen already, the chairman may be the CEO. Individual corporate charters typically spell out the reporting structure, so the roles of CEO, chairman, president and others depend on an individual corporation’s definitions.

The CEO’s Time Allocation

Though specific duties vary widely between CEO job descriptions, studies show that the complex tasks required for running a company at the CEO level is heavily time-consuming. As well as typical hours of business, CEOs tend to put work time in on weekends and holidays, suggesting the typical CEO personality leans to the workaholic side. Time management is often considered a challenge by those already in the role. As a company’s top manager, the typical CEO spends much time in meetings, both internally, with department heads and other junior managers, and externally, networking with other business leaders, financiers, media, government organizations and customers.