A chief executive officer (CEO) in American English[1] or managing director (MD)

in British English[2] describes the position of the most senior corporate offic
er, executive, leader or administrator in charge of managing an organization. CE
Os lead a range of organizations, including public and private corporations, non
-profit organizations and even some government organizations (e.g., Crown corpor
ations). The CEO of a corporation or company typically reports to the board of d
irectors and is charged with maximizing the value of the entity,[3] which may in
clude maximizing the share price, market share, revenues, or another element. In
the non-profit and government sector, CEOs typically aim at achieving outcomes
related to the organization's mission, such as reducing poverty, increasing lite
racy, etc. Titles also often given to the holder of CEO position include preside
nt and chief executive (CE).
Responsibilities[edit]
The responsibilities of an organization's CEO are set by the organization's boar
d of directors or other authority, depending on the organization's legal structu
re. They can be far-reaching or quite limited and are typically enshrined in a f
ormal delegation of authority. Typically, responsibilities include decision make
r on strategy and other key policy issues, leader, manager, and executor. The co
mmunicator role can involve speaking to the press and the rest of the outside wo
rld, as well as to the organization's management and employees; the decision-mak
ing role involves high-level decisions about policy and strategy. As a leader of
the company, the CEO/MD advises the board of directors, motivates employees, an
d drives change within the organization. As a manager, the CEO/MD presides over
the organization's day-to-day operations.[5][6][7] The term refers to the person
who makes all the key decisions regarding the company, which includes all secto
rs and fields of the business, including operations, marketing, business develop
ment, finance, human resources, etc. The CEO of a company is not necessarily the
owner of the company.
Characteristics[edit]
According to a study by Carola Frydman of MIT, from 1936 to the early 2000s, the
re has been a rapid increase in the share of CEOs holding an MBA; from approxima
tely 10% of CEOs in 1960 to more than 50% by the end of the century. Earlier in
the century, top executives were more likely to have technical degrees in scienc
e and engineering or law.[8] As of 2016, there were 20 female CEOs of S&P 500 co
mpanies, approximately 4%.[9]
Celebrities[edit]
Business publicists since the days of Edward Bernays and his client John D. Rock
efeller and even more successfully the corporate publicists for Henry Ford, prom
oted the concept of the "celebrity CEO". Business journalists have often adopted
this approach, which assumes that the corporate achievements, especially in the
arena of manufacturing, were produced by unique talented individuals, especiall
y the "heroic CEO". In effect, journalists celebrate a CEO who takes distinctive
strategic actions. The model is the celebrity in entertainment, sports, and pol
itics. Guthey et al. argue that "...these individuals are not self-made, but rat
her are created by a process of widespread media exposure to the point that thei
r actions, personalities, and even private lives function symbolically to repres
ent significant dynamics and tensions prevalent in the contemporary business atm
osphere."[10] Journalism thereby exaggerates the importance of the CEO and tends
to neglect the harder-to-describe broader corporate factors. There is little at
tention to the intricately organized technical bureaucracy that actually does th
e work. Hubris sets in when the CEO internalizes the celebrity and becomes exces
sively self-confident in making complex decisions. Indeed, there may be an empha
sis on the sort of decisions that attract the celebrity journalists.[11]
International use[edit]
In some European Union countries, there is a dual board system with two separate
boards, one executive board for the day-to-day business and one supervisory boa
rd for control purposes (selected by the shareholders). In these countries, the

CEO presides over the executive board and the chairman presides over the supervi
sory board, and these two roles will always be held by different people. This en
sures a distinction between management by the executive board and governance by
the supervisory board. This allows for clear lines of authority. The aim is to p
revent a conflict of interest and too much power being concentrated in the hands
of one person.
In the United States, the board of directors (elected by the shareholders) is of
ten equivalent to the supervisory board, while the executive board may often be
known as the executive committee (the division/subsidiary heads and C-level offi
cers that report directly to the CEO).
In the United States, and in business, the executive officers are usually the to
p officers of a corporation, the chief executive officer (CEO) being the best-kn
own type. The definition varies; for instance, the California Corporate Disclosu
re Act defines "executive officers" as the five most highly compensated officers
not also sitting on the board of directors. In the case of a sole proprietorshi
p, an executive officer is the sole proprietor. In the case of a partnership, an
executive officer is a managing partner, senior partner, or administrative part
ner. In the case of a limited liability company, executive officer is any member
, manager, or officer.
Related positions[edit]
Main article: Corporate title
Typically, a CEO has several subordinate executives, each of whom has specific f
unctional responsibilities referred to as senior executives,[12] executive offic
ers or corporate officers. Subordinate executives are given different titles in
different organizations, but one common category of subordinate executive is the
vice-president (VP). An organization may have more than one vice-president, eac
h tasked with a different area of responsibility (e.g., VP of finance, VP of hum
an resources, VP of research and development, etc.). Some organizations have sub
ordinate executive officers who also have the word "Chief" in their job title, s
uch as Chief Operating Officer (COO), Chief Financial Officer (CFO) and Chief Te
chnology Officer (CTO).
US[edit]
In the US, the term chief executive officer is used primarily in business, where
as the term executive director is used primarily in the not-for-profit sector. T
hese terms are generally mutually exclusive and refer to distinct legal duties a
nd responsibilities. Implicit in the use of these titles is that the public not
be misled and the general standard regarding their use be consistently applied.
UK[edit]
In the UK, "chief executive" and "chief executive officer", are used in both bus
iness and the charitable sector (not-for-profit sector).[13] As of 2013, the use
of the term director for senior charity staff is deprecated to avoid confusion
with the legal duties and responsibilities associated with being a charity direc
tor or trustee, which are normally non-executive (unpaid) roles.In the United Ki
ngdom, the term director is used instead of chief officer.