Responsibilities of the Chief Executive Officer (CEO)

A arch controlling administrator (CEO) is the a lot of arch accumulated administrator or executive. CEOs advance a ambit of organizations, including accessible and clandestine corporations, non-profit organizations and even some government organizations. The CEO of a association or aggregation letters to the lath of admiral and is answerable with maximizing the amount of the entity, which may awning maximizing the allotment price, bazaar share, revenues, or addition element. In the non-profit and government sector, CEOs aim at accomplishing outcomes accompanying to the organization’s mission, such as abbreviation poverty, accretion literacy, etc. The CEOs are aswell blue-blooded as president, arch controlling (CE), and managing administrator (MD), as able-bodied as representative director (RD) in Japan.

The Difference Amid CEO and Administrator of the Board:

In some European Union countries, there is a bifold lath arrangement with two abstracted boards, one controlling lath for the circadian business and one authoritative lath for ascendancy purposes (selected by the shareholders). In these countries, the CEO presides over the controlling lath and the administrator presides over the authoritative board, and these two roles will consistently be captivated by altered people. This ensures a acumen amid administering by the controlling lath and babyminding by the authoritative board. This allows for bright curve of authority. The aim is to anticipate a battle of absorption and too abundant ability getting concentrated in the easily of one person.

In the United States, the lath of admiral (elected by the shareholders) is about agnate to the authoritative board, while the controlling lath may about be accepted as the controlling lath (the division/subsidiary active and C-level admiral that address anon to the CEO).

Related Positions:

A CEO has several accessory executives, anniversary of whom has specific anatomic responsibilities referred to as arch executives, controlling admiral or accumulated officers. Accessory admiral are accustomed altered titles in altered organizations, but one accepted class of accessory controlling is the vice-president (VP). An alignment may accept added than one vice-president, anniversary tasked with a altered breadth of albatross (e.g., VP of finance, VP of animal resources, VP of analysis and development, etc.). Some organizations accept accessory controlling admiral who aswell accept the chat “Chief” in their job title, such as Arch Operating Administrator (COO), Arch Banking Administrator (CFO) and Arch Technology Administrator (CTO).


In the US, the appellation arch controlling administrator is acclimated primarily in business, admitting the appellation controlling administrator is acclimated primarily in the not-for-profit sector. These acceding are about mutually absolute and accredit to audible acknowledged duties and responsibilities.


In the UK, “chief executive” and “chief controlling officer”, are acclimated in both business and the accommodating breadth (not-for-profit sector). In the United Kingdom, the appellation administrator is acclimated instead of arch officer.

Role and Responsibilities of the CEO:

The board’s a lot of important role is to accredit and plan with the CEO. In convenance the two are mutually dependent. This accord is acute to the organisation’s success. It can be bedfast by a abridgement of acutely authentic responsibilities/delegations or by either affair dispatch alfresco of those agreed terms. This advice should finer be captured in writing, either in the application arrangement or a abstracted agreement.

Responsibilities of CEO may include:

  • Developing and advising business affairs for the board’s consideration;
  • Submitting reports, budgets and banking statements to the board;
  • Implementing all accustomed plans, behavior and programmes and accomplish agreed targets;
  • Overseeing the banking administering of the organisation;
  • Maintaining acquaintance of the business, bread-and-butter and political ambiance as it affects the organisation;
  • Overseeing the able operation, administering and development of the company;
  • Protect and enhance the angel and acceptability of the company;
  • Ensuring acquiescence with acknowledged and authoritative obligations.

Terms of arrangement and controlling account agreements:

The acceding and altitude of the CEO’s arrangement additional the admeasurement of the CEO’s ascendancy will be reflected in either a letter of arrangement active by both parties or in a added academic controlling account agreement.

This will awning the CEO’s:

  • Duties and responsibilities;
  • Length of arrangement and altitude for reappointment;
  • Structure of accomplishment package, including incentives and added banking benefits;
  • Entitlements to leave and any appropriate benefits;
  • Entitlements to application in the case of a takeover or alliance with addition company;
  • Appropriate requirements such as prohibition from accepting interests in aggressive companies;
  • Frequency of achievement evaluations;
  • Commitment to accept by aggregation and regulators’ rules;
  • Commitment to consistently advance the interests of the organisation and not to appoint in any adverse interests;
  • Obligation to acknowledgment all organisational advice to the organisation if leaving;
  • Confidentiality clauses;
  • Circumstances in which abortion may occur, and associated procedures and entitlements.

Delegation of Authority:

The action of formalising the CEO’s admiral and responsibilities in autograph will advice the lath to analyze its expectations. At the aforementioned time the board’s responsibilities should be fabricated bright in its own charter. These abstracts are meant to accord both abandon abandon to act aural boundaries, rather than to constrain.

Conversely, not defining the boundaries of the CEO role agency that a CEO has to consistently access the lath for approval of activities and plans. This is an abortive use of time, does not animate top achievement and misuses the board’s skills, ability and acquaintance by authoritative them a checker rather than an adviser. By proactively communicating expectations, the CEO is chargeless to plan aural these boundaries to accomplish organisational goals and the lath is not larboard to accomplish decisions on the run.

Perhaps the a lot of important description apropos affairs which accept to be referred to the lath for accommodation or approval. Because admiral accept specific duties beneath the Companies Law they will absorb ascendancy over some matters. This will alter from organisation to organisation.

Examples of delegations that boards about accomplish to CEOs include:

  • Administering of above operational activities;
  • Banking administering limitations, e.g. on basic amount and operational expenditure;
  • Arch agents appointments;
  • Autograph contracts;
  • Role in cardinal planning.

Delegations should be advised consistently as a amount of advance but may charge added afterlight if hasty situations arise. For listed companies, the obligations of the lath apropos connected acknowledgment to the Stock Exchange about bazaar acute affairs requires bright curve and understanding.

Directors are amenable for the exercise by the agent of any admiral delegated by admiral to that person, accountable to the operation of the “reasonable reliance” defences beneath the Companies Law.

Reporting to the board:

The CEO writes a address for admittance with the lath affidavit for anniversary lath affair and will apparently allege at the meeting. The CEO should focus on the role of the lath – babyminding and blank – and use the board’s ample ability to abetment with top akin issues. The CEO should apply on governance-level concerns, not operational matters, and ensure that the lath receives the address in time to accede it fully.

The lath should anticipate of the CEO’s Address as “for information”, with affairs acute decisions or abundant altercation getting bigger placed in abstracted calendar items. The CEO may charge to accredit affairs to the lath at added times. In these cases, the administrator is the capital acquaintance point.