CEO Definition and Meaning
CEO is an acronym in the English language that comes from the expression Chief Executive Officer (which can be translated as Chief Executive Officer). The concept refers to the position held by the person who has the greatest managerial responsibility in a company.
According to abbreviationfinder, a CEO, therefore, is a chief executive, a managing director, a general director, or a chief executive officer. The name may vary according to the country and the company, but always refers to the one who is the most responsible for the administration and management of an entity.
Small and medium-sized companies (SMEs) generally do not have a CEO, since the director or president is usually the owner or, at least, the same person. In larger companies, on the other hand, there is usually one person in charge of general (corporate) matters and another who is in charge of the administrative and strategic operations of each day.
In the corporate hierarchy, the CEO usually has several directors as subordinates, who have responsibility in specific areas. The CEO, in this framework, is the one to whom the chief financial officer, the chief operating officer and other executives must report.
It is important to establish that there are a series of qualities and characteristics that every CEO must have in order to lead the company on the best path. We are referring to aspects such as the following:
-It is essential that you have the capacity and ability to know the strengths of each employee and take measures to consolidate and improve them. And this improvement is going to have a positive impact on the entire company.
-He has to be a respectful person with everyone, even if he is in the highest part of the organization chart.
-Must be loyal to both the company and the staff that make it up.
-It must be someone who is educated, who is committed to dialogue and who knows how to make each employee feel integrated into the company as a whole.
-No less important is that you have to have the ability to perfectly recognize and maintain what are the objectives that the company wants to achieve both in the short, medium or long term.
-It also has to be someone with enough strength not to give up when adversity occurs. You must be able to assume the situation and reflect and know what the best measures that can be taken to overcome it are
It is important to note that the CEO performs internal and external functions. Internally, it designs strategies that it communicates to the rest of the workers, hires new employees and supervises the different corporate processes. In addition, the CEO must report various issues of the company to external stakeholders, such as data on its achievements and goals. The CEO, in this sense, can develop reports for shareholders or investors.
In addition to all the above, we have to emphasize that CEO is the acronym for different entities and organizations such as the Center for Opinion Studies of Catalonia, the Orense Business Confederation and the Olympic Training Center of Chile.