CEO

Y-Negocios

2022

We explain what a CEO is and how it differs from an owner and a founder. Also, what are his roles and responsibilities?

The acronym CEO comes from chief executive officer, which translates to "chief executive officer."

What is a CEO?

In the business world, the acronym CEO to refer to the executive director of a business or organization. This expression comes from the English chief executive officer, which translates to “chief executive officer” and may also be known as CEO, chief executive officer, chief executive officer, or General Manager, among other valid terms in Spanish.

In plain terms, the CEO of a company is the highest administrative and managerial authority of the organization, in charge of taking the highest decisions strategic management of the company. In small and medium-sized companies, such as startup, this position usually also falls to the founder and owner of the company, while in large corporations the CEO is part of the managerial positions supervised by a meeting of shareholders or by the corporate board.

These differences in the so-called corporate governance can be better illustrated through a comparison with the functioning of the republics: the CEO would become a kind of prime minister of the company, whose decisions, however, are supervised by the board of directors or the shareholders' meeting, which operates as a kind of legislative power.

What is the difference between CEO, owner and founder?

Initially, the founder of a company may be its owner and CEO, like John D. Rockefeller.

Normally, the CEO is the highest administrative and managerial authority of the company, that is, he is part of the staff hired by the owners of the organization to lead their destinies, relying on his expertise and his career in the world of business.

However, the CEO is not necessarily the owner of the company he directs, since the owners in this case are usually the shareholders, that is, those who have invested their money in the corporation and who at the end of the month receive dividends from it, not a salary as in the case of the CEO.

Finally, the founder of a corporation is the person who laid the foundation for the organization to start operating. Initially, it is common for the founder of a company to be both its owner and CEO, but these three roles may well separate as corporations endure and outlive those who founded them.

For example, the Standard Oil Company was an American oil company founded in 1870 by John D. Rockefeller (1839-1937), which in 1911 was forced to legally split into 34 independent companies, one of which is today's Exxon (formerly it was called Standard Oil of New York Y Standard Oil of New Jersey). The latter is directed by Darren Woods, its CEO, and its owners are a group of companies: The Vanguard Group, State Street Corporation and BlackRock, mainly.

Roles and responsibilities of a CEO

The functions and responsibilities of a CEO are usually:

  • Represent the corporation before the general public and investors.
  • Make the management decisions of the company, especially with regard to its politics organization and its strategy financial.
  • Advise the shareholders' meeting regarding decision-making at the highest level.
  • Intermediate with the different actors involved in the life of the company, such as investors, shareholders or large customers.
  • Oversee (or choose) the optimal management team for the performance of the company.
  • In a company startup, create the vision and strategy of the company and communicate it effectively to those involved.
  • Chair the board of directors and ensure that there is a unified criteria among the directors or coordinators of each area of ​​the company.

Who works alongside the CEO of a company?

The CEO can be understood as a general director of the company, that is, a director of the directors of each area, who has the mission of supervising them, keeping them in communication and imparting a single and uniform managerial criterion. In this sense, those in charge of the different areas of the organization, such as directors of operations, communications, of finance, systems, among many others.

Desired Skills in a CEO

A good CEO must have knowledge and experience in the business world.

There is no single formula to define a CEO, but in general the CEO of a corporation is expected to possess talents and knowledge as the following:

  • Financial and managerial knowledge, whether he has acquired it through study or through a successful career in the business world.
  • Charisma and ability leadership, to inspire the workers and keep in touch with the management team.
  • Strategic and overall vision, to make the best decisions at the strategic level and lead the company towards its goals. goals for the best way.
  • Business know-how, that is, knowledge and experience in the business world that allow you to have astuteness and intuition.
  • Communication skills, to convey your message and your proposal in the best way to both clients and employees and shareholders.
  • Creativity and curiosity, essential to be at the forefront of a competitive and changing world such as business.

CEO Examples

Some of today's most famous CEOs are:

  • Jeff Bezos. Founder and owner of 7% of the online sales company Amazon, he is one of the richest men in the world and until 2021 one of the best-known CEOs. In that year he handed over the executive management of Amazon to Andy Jassy, ​​who currently holds it, in order to dedicate himself fully to the space company Blue Origin, of which he is also a founder.
  • Sundar Pichai. American computer engineer of Indian origin, he is the current CEO of Google, a company he joined in 2004. After almost 11 years of leading projects of importance to the corporation, such as Google Chrome and Chrome OS, he held the position of CEO in 2015 at just 42 years old.
  • Tim Cook. An American businessman and computer engineer, he replaced Steve Jobs as CEO of Apple after his death in 2011. Cook had joined the corporation in 1998 as vice president of Global Operations. Under his leadership, Apple doubled its revenues and shifted to a more environmentally friendly business model. environment and highly committed to cybersecurity.
  • Mark Zuckerberg. American computer engineer, founding member of the company Facebook and the social network namesake, he is currently the CEO of the company and one of the youngest billionaires in the world. He is considered a very influential personality internationally due to the scope of his computer products, which has involved him in numerous controversies over the digital privacy.
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