In business, the role of a Chief Executive Officer, or CEO, can determine much of a company’s success or failure. The CEO is the highest-ranking executive in a company. Primary responsibilities include making major corporate decisions, managing operations and resources and acting as the main point of communication between the board of directors and corporate operations.

What Does A CEO Do?

A CEO leads a company, making sure all parts of the business work well together and follow a clear plan. CEOs are responsible for shaping the company’s goals and making sure these goals are met. CEOs also help define the company’s values and how the firm interacts with customers, partners, and the public. Additionally, they communicate regularly with the company’s board of directors to report on progress and get guidance.

CEO Vs. Owner: What’s The Difference?

A CEO’s role differs from that of an owner; while an owner holds equity in the company and has a vested interest in the value of the business, a CEO does not necessarily have an ownership stake. Owners invest capital and assume risk associated with the company. In contrast, CEOs are often appointed by the owner or the board to lead and deliver on the strategic direction set for the company.

Although the owner and chief executive role differ, many, if not most, CEOs end up with an equity stake in the company. Shares can be part of their compensation plan or signing bonus. In startups backed by venture capital, 6-8% is a typical share for outside CEOs.

CEO Vs. President

In many organizations, the CEO and the president have distinct roles. The CEO, as the highest-ranking officer, focuses on the overall vision and strategy of the company and often represents the company in public. In contrast, the president’s role often involves more of the day-to-day management, overseeing operations and implementing the strategy and policies set by the CEO. The president typically reports to the CEO and may handle more internal aspects, such as managing senior staff, business units, and functions.