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Text of the page (random words):
chief executive officer is attested as early as 1782 when an ordinance of the congress of the confederation of the united states of america used the term to refer to governors and other leaders of the executive branches of each of the thirteen colonies 3 in draft additions to the oxford english dictionary published online in 2011 the dictionary says that the use of ceo as an acronym for a chief executive officer originated in australia with the first attestation being in 1914 the first american usage cited is from 1972 4 responsibilities edit the responsibilities of an organization s ceo are set by the organization s board of directors or other authority depending on the organization s structure they can be far reaching or quite limited and are typically enshrined in a formal delegation of authority regarding business administration typically responsibilities include being an active decision maker on business strategy and other key policy issues as well as leader manager and executor roles the communicator role can involve speaking to the press and the public as well as to the organization s management and employees the decision making role entails making high level decisions regarding policy and strategy the ceo is responsible for implementing the goals targets and strategic objectives as determined by the board of directors as an executive officer of the company the ceo reports the status of the business to the board of directors motivates employees and drives change within the organization as a manager the ceo presides over the organization s day to day operations 5 6 7 the ceo is the person who is ultimately accountable for a company s business decisions including those in operations marketing business development finance human resources etc the ceo of a political party is often entrusted with fundraising particularly for election campaigns the use of the ceo title may be used by for profit companies or non profit or charitable organisations such as the wikimedia foundation international use edit in some countries there is a dual board system with two separate boards one executive board for the day to day business and one supervisory board for control purposes selected by the shareholders in these countries the ceo presides over the executive board and the chairperson presides over the supervisory board and these two roles will always be held by different people this ensures 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 prevent 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 often equivalent to the supervisory board while the executive board may often be known as the executive committee the division subsidiary heads and c level officers that report directly to the ceo in the united states and in business the executive officers are usually the top officers of a corporation the chief executive officer ceo being the best known type the definition varies for instance the california corporate disclosure 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 proprietorship an executive officer is the sole proprietor in the case of a partnership an executive officer is a managing partner senior partner or administrative partner in the case of a limited liability company an executive officer is any member manager or officer citation needed related positions edit main article corporate title depending on the organization a ceo may have several subordinate executives to help run the day to day administration of the company each of whom has specific functional responsibilities referred to as senior executives 8 executive officers or corporate officers subordinate executives are given different titles in different organizations but one common category of subordinate executive if the ceo is also the president is the vice president vp an organization may have more than one vice president each tasked with a different area of responsibility e g vp of finance vp of human resources examples of subordinate executive officers who typically report to the ceo include the chief operating officer coo chief financial officer cfo chief strategy officer cso chief marketing officer cmo and chief business officer cbo the public relations focused position of chief reputation officer is sometimes included as one such subordinate executive officer but as suggested by anthony johndrow ceo of reputation economy advisors it can also be seen as simply another way to add emphasis to the role of a modern day ceo where they are both the external face of and the driving force behind an organization culture 9 united kingdom edit in the uk chief executive and chief executive officer are used in local government where their position in law is described as the head of paid service 10 and in business and in the charitable sector 11 as of 2013 update 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 director or trustee which are normally non executive unpaid roles the term managing director is often used in lieu of chief executive officer united states edit brad d smith ceo of intuit from 2008 to 2018 in the us the term chief executive officer is used primarily in business whereas the term executive director is used primarily in the not for profit sector 12 these terms are generally mutually exclusive and refer to distinct legal duties and responsibilities 13 the ceo is the highest ranking executive in a company making corporate decisions managing operations allocating resources and serving as the main point of communication between the board of directors and the company 14 celebrity ceos edit business publicists since the days of edward bernays 1891 1995 and his client john d rockefeller 1839 1937 and even more successfully the corporate publicists for henry ford promoted 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 are produced by uniquely talented individuals especially the heroic ceo in effect journalists celebrate a ceo who takes distinctive strategic actions the model is the celebrity in entertainment sports and politics compare the great man theory guthey et al argues that these individuals are not self made but rather are created by a process of widespread media exposure to the point that their actions personalities and even private lives function symbolically to represent significant dynamics and tensions prevalent in the contemporary business atmosphere 15 journalism thereby exaggerates the importance of the ceo and tends to neglect harder to describe broader corporate factors there is little attention to the intricately organized technical bureaucracy that actually does the work hubris sets in when the ceo internalizes the celebrity and becomes excessively self confident in making complex decisions there may be an emphasis on the sort of decisions that attract the celebrity journalists 16 research published in 2009 by ulrike malmendier and geoffrey tate indicates that firms with award winning ceos subsequently underperform in terms both of stock and of operating performance 17 criticism edit ceo selection and performance evaluation edit ceos and senior executives are governed by the board of directors the proper selection and evaluation of the ceo and the executive team is critical to the company s performance yet there is no established standard framework to evaluate and govern the ceo performance aside from sarbanes oxley act legal standard to govern the financial reporting of public companies and hold the ceo cfo accountable there are no industry standards to test the ceo competency and actions or to help align the performance of the executive team with the shareholders interest and performance expectations one initiative proposes a standardized questionnaire used in annual ceo reviews and senior executive recruitment these questionnaires help guide ceo strategy and assure the shareholders that the company and its executive team are on the right track according to the executive institute the top 10 questions every board must ask its ceo include the following are we in the right business market segment s what are the growth areas to invest in and loss areas to divest what are the emerging pestel political economic societal technological environmental legal risks and opportunities what market data supports our strategy what are our strengths weaknesses opportunities and threats swots what are we doing to address each one of the swots what are our core competencies how we can leverage them better what are the operational or execution risks and how do you manage them what are our key performance indicators kpis and targets that help us measure our performance how do you plan to achieve those targets and in what timeframe how can we build a sustainable competitive advantage every ceo and c level executive must be able to provide specific answers to the preceding questions readily and clearly additionally these questions can also be used as a framework for evaluating potential candidates for the succession planning and selection process 18 executive compensation edit main article executive compensation controversy executive compensation has been a source of criticism following a dramatic rise in pay relative to the average worker s wage for example the relative pay was 20 to 1 in 1965 in the us but had risen to 376 to 1 by 2000 19 the relative pay differs around the world and in some smaller countries is still around 20 to 1 20 observers differ as to whether the rise is due to competition for talent or due to lack of control by compensation committees 21 in recent years investors have demanded more say over executive pay 22 diversity edit main article gender diversity in the boardroom lack of diversity amongst chief executives has also been a source of criticism 23 in 2018 5 of fortune 500 ceos were women 24 in 2023 the number rose to 10 4 of for women ceo s of fortune 500 companies 25 the reasons for this are explained or justified in various ways and may include biological sex differences male and female differences in big five personality traits and temperament sex differences in psychology and interests maternity and career breaks hypergamy phallogocentrism the existence of old boy networks tradition and the lack of female role models in that regard 26 27 28 some countries have passed laws mandating boardroom gender quotas 29 in 2023 rockefeller foundation awarded a grant to korn ferry to research strategies and then action a plan to help more women to become ceo s 30 toxic executives edit see also toxic leader there are contentious claims that a significant number of ceos have psychopathic tendencies often characterized by power seeking behavior and dominance these individuals can often conceal their ruthlessness and antisocial behavior behind a facade of charm and eloquence traits such as courage and risk taking generally considered desirable are often found alongside these psychopathic tendencies tara swart a neuroscientist at mit sloan school of management has suggested that individuals with psychopathic traits thrive in chaotic environments and are aware that others do not as a result they may intentionally create chaos in the workplace 31 32 this perspective is explored in the book snakes in suits co authored by robert d hare however scott lilienfeld has argued that the attention given to psychopathy in the workplace by both the media and scholars has far exceeded the available scientific evidence 33 emilia bunea writing in psychology today has linked psychopathic traits in managers to workplace bullying employee dissatisfaction and turnover intentions despite this bunea cautions that excessive worry about supposed psychopathic managers could discourage individuals from pursuing careers in corporations and deter employees from addressing issues with difficult bosses 34 controversies edit this criticism or controversy section may compromise the article s neutrality please help integrate negative information into other sections or remove undue focus on minor criticisms and controversies may 2026 there have been several notable controversies involving famous ceos some of the most prominent controversies were a result of the metoo movement including harvey weinstein and the weinstein company steve wynn and wynn resorts ltd and leslie moonves cbs 35 elon musk the ceo of tesla inc and spacex has been the subject of several controversies in 2018 musk tweeted a m considering taking tesla private at 420 funding secured in the middle of a trading day and a few weeks later tesla announced it would go private the sec investigated musk shortly after his tweet and charged him with securities fraud musk settled the controversy and stepped down as chair of tesla s board but remained the company s ceo musk and tesla both paid a 20 million penalty to be distributed among harmed investors 35 see also edit ceo succession ceo of public schools city manager executive officer founder mode glass cliff list of books written by ceos list of chief executive officers list of health insurance chief executive officers in the united states occupational information network prime minister united states department of labor references edit 1 2 lin tom c w 2014 ceos and presidents pdf u c davis law review 47 4 1351 1416 ssrn 2428371 westphal james d zajac edward j march 1995 who shall govern ceo board power demographic similarity and new director selection administrative science quarterly 40 1 60 83 doi 10 2307 2393700 jstor 2393700 an ordinance for regulating the post office of the united states of america journals of the continental congress 1774 1789 vol 23 1914 october 1782 p 670 archived from the original on 2026 01 16 retrieved 22 march 2025 ceo oxford english dictionary online ed oxford university press doi 10 1093 oed 9476968508 subscription or participating institution membership required chief executive officer ceo investopedia investopedia us a division of iac archived from the original on 2025 12 29 retrieved 2014 10 23 chief executive officer ceo businessdictionary com webfinance inc archived from the original on october 16 2020 retrieved october 23 2014 ceo chief executive officer the capstone encyclopaedia of business the most up to date and accessible guide to business ever john wiley sons 2013 pp 79 80 isbn 978 0 85708 555 9 oclc 862320995 menz markus january 2012 functional top management team members a review synthesis and research agenda journal of management 38 1 45 80 doi 10 1177 0149206311421830 rise of the chi...
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