What is the Role of a Chief Executive Officer?

The Chief Executive Officer (CEO) is the highest-ranking individual in a company. They are responsible for setting the overall direction of the company, making decisions that will ensure its long-term success, and managing its general operations. CEOs are also expected to expand the company, drive profitability, and improve stock prices (in the case of public companies).A Chief Operating Officer (COO) is the second-highest ranking employee in a company and reports to the CEO. The COO is in charge of implementing and overseeing day-to-day operations, processes, and strategies to achieve the company's mission and vision.

The CEO and COO are leadership titles in organizations, usually being the highest-ranking positions. They are responsible for making decisions that will fulfill the mission and success of the organization. The term CEO is most commonly used in nonprofits, while COO is used with for-profit entities and some large nonprofits. The CEO's job is unlike any other in the organization. They are ultimately responsible for every decision and action of every member of the company, even those they are not aware of.

CEOs are allowed few mistakes, which is why research shows that between 35 and 50 percent of all CEOs are replaced within five years. In the UK, both CEO and COO are used in local government, business, and the charitable sector. There are other senior management positions such as Chief Digital Officer, Data Officer, and Marketing Director, but their roles and functions vary from company to company. The CEO ranks first in an organization and is responsible for implementing existing plans and policies, improving the company's financial strength, supporting ongoing digital business transformation, and setting future strategy. They are also responsible for making decisions that will ensure its long-term success. The President is usually second in charge after the CEO. Depending on the organization, a CEO may have several subordinate executives to help direct the day-to-day management of the company.

Examples of subordinate chief executives who typically report to the CEO are the Chief Operating Officer (COO), Chief Financial Officer (CFO), Chief Strategy Officer (CSO), Chief Business Officer (CBO), Medical Director (in healthcare organizations), Director of Innovation (in cutting-edge technology companies), and Reputation Director (in public relations).In general, the term CEO is used primarily in business in the United States, while COO is used primarily in nonprofits.