What is a CEO? Roles and Responsibilities of a Chief Executive Officer

Key takeaways

The chief executive officer (CEO) leads all employees, navigates social and economic challenges, and drives the enterprise to grow and profit.

• As of December 2025, the median total pay, which includes base salary and additional pay, such as profit-sharing, commissions, bonuses, or other compensation, for CEOs amounts to $333,000 [1].

• As a CEO, you set strategy, allocate resources, guide operations, build your executive team, and communicate with stakeholders to drive your company’s direction, competitiveness, and long-term success. 

• You can lead effectively and keep your organization moving forward by developing confidence, motivating others, mastering financials, making tough decisions, communicating clearly, staying open-minded, and adapting quickly. 

Discover what a corporate chief executive’s role really looks like, how it compares to other top titles, and the typical attributes and qualifications you’ll need if you want to ascend to the top spot in corporate leadership. Then, consider enrolling in the Leading: Human Resource Management and Leadership Specialization to learn more about leading people and organizations to adapt, compete, and succeed in a complex, global environment. In as few as three months, you can develop your skills in team management, organizational strategy, leadership, and employee engagement. 

What is a CEO??

The highest-ranking executive in an organization, the chief executive officer (CEO), leads all employees, navigates social and economic challenges, and drives the enterprise to grow and profit. The CEO handles all overall operations management and company performance. As a CEO, you’ll make high-priority decisions, set strategic direction, and oversee plans to achieve organizational goals. In addition, you'll articulate and embody the company’s vision and set the tone for your organization’s work culture. 

You will meet with key stakeholders daily and work to manage internal and external relationships. You'll foster sustainable growth and operational progress through thoughtful decisions, investing in organizational futures, and analyzing outcomes. As a CEO, you would typically report to a board of directors and directly manage other C-suite executives. 

What is a CEO responsible for? 

As a CEO, you will shape your company’s direction and ensure its profitability and competitiveness in the marketplace. Common responsibilities you might have include: 

• Setting vision and strategy: Along with defining your organization's mission, vision, and values, you would embody them and set goals to achieve them.

• Allocating resources: As CEO, you'll decide how to invest a company's resources (capital, personnel, and time) to achieve business objectives.

• Managing operations: You'll oversee day-to-day operations with an eye to their alignment with overall strategic goals.

• Building and leading the executive team: As CEO, you’ll select your company’s top leadership, manage them, and ensure they work well together.

• Communicating with stakeholders: As the main face of the company, this role involves keeping internal and external stakeholders informed. 

What is the difference between a CEO and the owner of a company?

A CEO handles the day-to-day management of a business and aligns strategy with business objectives. CEOs typically report to a board of directors or a company owner. 

As the name suggests, an owner has a financial investment in a company, either as a sole or partial owner. An owner may play a role in daily operations, but they typically hire a CEO to oversee the company. Note, however, that a CEO can be an owner and vice versa. It’s not an either-or proposition.

What is the difference between a CEO and the chairman of the board?

A CEO runs a company and reports to the board. The board, which represents a combination of management and shareholder interests, appoints the CEO. 

The board doesn’t appoint the chairman or chair—it elects them. The chairman then runs the board, setting agendas, ensuring meetings run smoothly, and working to achieve consensus. 

A board chair can’t overturn a board decision, but the board can overrule a CEO’s decision.

In some companies, the same person serves as CEO and board chair. Some argue that the practice reduces the business’s available checks and balances. 

Another approach is for the CEO to become the board chair, which takes advantage of the CEO’s relationships and expertise. 

Is a CEO higher than a president?

Yes, a CEO is generally higher than a president in a company’s corporate hierarchy. The president reports to the CEO and is often responsible for the day-to-day operations and the execution of the strategy and vision the CEO presents. 

CEO skills

A CEO needs to be a strong leader. Since you’re in charge of the direction of the entire business, you'll need confidence and the ability to motivate others. 

The CEO role also demands business acumen. You’ll need to understand a profit and loss statement, make and stick to budgets, control costs, and analyze data to identify opportunities and areas where the business can improve. 

You may need to make difficult decisions or navigate a crisis, so the ability to think critically, solicit input, and have an open mind can also help in the CEO role. Strong problem-solving skills and creativity can also support your resilience as a CEO.

CEOs need good communication skills. You’ll need to represent the company to the public, the media, investors, clients, and all internal departments and employees, and good written and verbal communication can help.

As CEO, you must also be wise enough to learn from past experiences. Having flexibility allows you to adapt to changing business conditions and keep your organization moving in the right direction.

Read more: What Are Interpersonal Skills? And How to Strengthen Them

CEO salary and job outlook 

CEO salaries make the news when they’re astronomical. Consider Elon Musk’s salary in the billions of dollars per year as CEO of Tesla or Tim Cook’s nearly billion-dollar salary as the head of Apple, Inc. Yet, those salaries don't represent most CEOs. As of December 2025, the median total pay, which includes base salary and additional pay, such as profit-sharing, commissions, bonuses, or other compensation, for CEOs amounts to $333,000 [1].

The US Bureau of Labor Statistics forecasts employment for top executives will grow by about 4 percent from 2024 to 2034. This amounts to an average projected growth of about 331,000 openings for top executives annually throughout the decade [2].

CEO career path 

You can achieve a CEO position by taking various pathways. However, you will likely take several steps in common with others along the way. 

Education

Typically, CEOs start with a bachelor’s degree in business administration, finance, or a field of study specific to the organization’s industry. Many will continue their education and earn a Master of Business Administration. Going to business school can provide exposure to business theory and management skills to develop professional expertise.

Experience

On-the-job experience provides a great way to begin your journey to a CEO’s role. Many CEOs work in several different organizational areas before taking the top spot. 

Starting in an entry-level position at that company, or a similar one in your industry, can help you understand what working on the front lines looks like. Promotion through the ranks to more managerial roles enables you to develop your skills as a team leader. 

Network

CEOs often rely on their business relationships to get things done. Start early to expand your professional network. You might join professional associations, industry groups, or LinkedIn. You could also take advantage of continued learning opportunities to gain exposure to a wide variety of people in different roles.

Looking for a mentor and, later, becoming one yourself can also help you develop as a leader. You’ll build more relationships and gain a fresh perspective.

Explore bite-sized ideas for career growth

Keep up with the latest trends and in-demand skills in your industry by exploring our Career Resources Hub. You might discover other ways to grow in your career with these free resources:

• Make a plan: Template inside: How to build your career development plan

• Hear from industry professionals: How to Use GenAI to Advance Your Career: Insight from Coursera’s Former CEO

• Watch on YouTube: How to Prepare for AI in Your Career ￨Expert Tips from Tech Leaders

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