What is a CEO?

(Voice over) : A chief executive officer (CEO) is the highest-ranking executive in a company, whose 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 (the board) and corporate operations, and being the public face of the company. A CEO is elected by the board and its shareholders.

CEOs lead a range of organizations, including public and private corporations, non-profit organizations and even some government organizations (e.g., Crown corporations).

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; in smaller companies, CEOs are often more hands-on and involved with day-to-day functions. CEOs can set the tone, vision, and sometimes the culture of their organizations.

Because of their frequent dealings with the public, sometimes the chief executive officers of large corporations become famous. Famous CEOs include Henry Ford, Bill Gates, Steve Jobs, Elon Musk and Richard Branson.

Lack of diversity amongst chief executives has been a source of criticism. In 2018, 5% of Fortune 500 CEOs were women. The reasons for this are multi factorial, and may include natural sex differences, the existence of old boy networks and the lack of female role models. Some countries have passed laws mandating boardroom gender quotas.