What Exactly is a CEOs Job in a Company?
CEOs!!! A very popular position in a company, and a good CEO can make a company into a trillion dollar company while a bad one can send a strong company to bankruptcy in less than 1 year. For easy understanding, it is important to know that CEOs are employees of the firm, although shareholders are willing to pay them millions of dollars for their contribution in the company. It is at this point that you ask the main job of a CEO, and I will be discussing it in this post.
The basic truth about CEOs is that they come to work everyday and close like every regular employee but what they actually do is complicated. Within the company, the CEO is only answerable to the board of Directors and the board of directors either decide their packages, give advise, or fire them. In most small companies, the biggest shareholder is the CEO, and the board of directors represents the shareholders in the company.
However, in larger corporations, CEOs typically lack majority ownership, making exceptions like Meta, where Mark Zuckerberg holds both the CEO position and the highest shareholding. Despite variations, the overarching objective for CEOs in large companies is to avoid dismissal by the board of directors.
In other to get that done, they need to keep pulling in money and letting the shares of the company go up continuously. As CEO, it is their job to choose the direction the company will take. They are responsible for deciding if the company will acquire another company, create new products, cut cost so as to increase productivity or keep the company going, implement growth strategy, open new offices in different countries, and keep things running in the company. To make this decisions, they would talk to the board of directors, other employees, and the external consultants.
Some CEOs do this by getting information from customers, whiles other would use financial statements and advice from senior managers. The decisions aren't made on a daily basis, in fact they might only make a few decisions throughout their career as CEO in the company.
While the CEO's decisions may not be a daily occurrence, the responsibility demands an in-depth understanding of industry trends and comprehensive company reports. Beyond steering the company's trajectory, CEOs also play a vital role in allocating financial resources.
it is the CEOs job to get advice from financial officers and other financial advisers including lawyers before taking a loan, making purchases, increasing salaries, or issuing dividend but then the CEO can decide to spend the companies money at their discretion even though it would be audited by external auditors as well as the company auditors overtime. While there are lots of smaller transactions that can be done by the accounting department, large amount of money needs to be vetted by the CEO before they can be approved.
It is the job of the CEO not to miss out on opportunities, and also not to waste money because any form of waste can be annoying to the boards but for ease, CEOs would give jobs to CFOs so the workloads can be reduced but at this, the CEO needs to always interact with the CFOs.
While other jobs can be delegated, acting as the face of the company cannot be delegated. Only the CEO can act as the face of the company and they own responsibility for everything they do to the public. The CEO cannot say that someone else did something they are meant to overlook, it is the job of the CEO to know everything going on, as well as be responsible in front of the press. It is the CEOs job to make you feel that their stocks are undervalued even when they excessively high, it is also their job to tell you that their product is the best there is and competitions are going to be far behind the chase.
Txhe role of a CEO is multifaceted, demanding a delicate balance between strategic decision-making, financial stewardship, and maintaining a positive public image. CEOs are entrusted with the responsibility of steering the ship, ensuring it sails smoothly through both challenges and opportunities, all while championing the interests of shareholders and the company at large.
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