Hail to the Chief: The Role of the CEO and How to Become One
Tasked with ultimate authority in the management of an organization, the position of Chief Executive Officer is the most coveted and demanding job in business. Relatively few will rise to lead from a company’s top spot, and those that do must steer their business towards competitive growth and profits to stay in the seat of power.
Those able to make it to the CEO job can expect to be rewarded highly for their talents. Among the top 200 American companies, the average salary for CEOs was $9.6 million last year, and this amount only shows signs of increasing even as the country faces economic decline.
What are the attributes companies are willing to reward so highly when choosing their leader? What does it take to make it to the top?
Responsibilities of the CEO
The CEO is in control of the day-to-day operation of a business and has considerable discretion in setting an overall game plan that sets a company’s direction. The CEO is required to report to the Board of Directors by whom they are selected and who may also remove them.
In some cases the board may choose to stay hands off when it comes to the big decisions, while in others the CEO is more restricted and expected to carry out plans decided by the board. Regardless of the level of such oversight, the CEO is the figurehead of the organization and is responsible for setting the tone and direction of the company.
CEOs make the big picture strategic decisions. Which product lines the company will follow, what markets will be entered, which business partners to form relationships with and which companies will be competed against are all typical decisions left up to the CEO.
As the CEO has final say over all operations of the company, he is accountable for the company’s actions. If the company gets into legal trouble, the CEO can end up in jail as he is expected to be aware of and responsible for all of the company’s activities.
Few positions and extremely competitive pay mean that only the best talent will be able to rise to become a company’s big boss. Candidates with the best chance of getting hired as CEO held the position at another company which they either sold profitably or left in a better condition than when they started.
Such executives likely got their first CEO job by taking a startup or a company in decline and leading it to profitability. A candidate for CEO needs to convince the board that they are an asset and not a liability, and the best way to demonstrate that you are a safe bet is to have a track record of proven business savvy.
Candidates aiming for the CEO position should compose value propositions letters that spell out their accomplishments and explain why they are up to the challenge of leading and address them to the existing leadership of the company they are interested in. With a little luck and the right experience, you may be able to become one of business’ most powerful leaders.
