Everything you need to know about becoming a CEO

A chief executive officer, or CEO, is the highest-ranking executive of a company or organization. These individuals manage the overall operations and resources of a business, communicate with board members and shareholders, and are often known as the public “face” of their company. 

What does a CEO do?

As the top executive within a business, a CEO serves as the company’s primary decision-maker. The phrase “the buck stops here” is a euphemism that aptly describes the chain-of-command that leaves strategic decision-making and growth in the hands of a CEO, despite the collaboration of employees and other executives working below them. 

Depending on how a company operates, a CEO may oversee the operations of other executives, employees, or even presidents of multiple entities (when part of a conglomerate). They also typically serve as the main liaison between a company and its board of directors, ensuring that the day-to-day operations follow the company policies established by a company’s board of directors.

Because a CEO will often focus on external, or public-facing issues, and are typically seen as the “face” of their business or organization. When a CEO interacts frequently with the public or is in charge of an extremely large entity, they can gain popularity and notoriety. Examples of this include Facebook CEO Mark Zuckerburg and the late Apple CEO Steve Jobs. In both of these examples, the company’s founder stepped into a dual role as CEO, which while not always the case, does happen often.

CEOs build relationships with stakeholders and donors, are involved in fundraising efforts, and oversee business’ funding on an executive level. While they usually won’t be as involved with the day-to-day slogging through paperwork and communication, they may direct the management of media relations, make media appearances, participate in community partnerships, outreach, and more. 

Specifically, in smaller companies, some CEOs choose to focus more on internal operations than dealing directly with the public. These CEOs work mainly with a company’s employees and other executives to provide direction, assess company goals, and develop targets for performance, and more. They may work closely with a company’s chief financial officer (CFO) to manage budgets and expenses, and direct spending to propel growth. 

How do you become a CEO?

A CEO serves in a role that offers both great power and great responsibility, as well as significant financial rewards. Working your way up the corporate ladder takes time, experience, and hard work, and most CEOs dedicate years of their working life to achieve their position. 

Unless a CEO plans to launch their own company, most will first earn a bachelor’s degree. A degree in business, liberal arts, communication, or another similar field may suit a potential CEO. 

After their undergraduate coursework is complete, many CEOs will obtain a graduate degree in business administration, finance, or law such as a Master’s of Business Administration (MBA). Coursework within these fields of study is helpful to prepare a would-be CEO to learn the intricacies of running a business, corporate strategy, leadership, project management, and more.

Upon entering the workforce, many future CEOs will need to gain experience in their chosen line of work with an entry-level position in lower management, supervising, administration, or similar roles. With some experience under their belt, a future CEO can then begin to apply for roles in mid-management or upper management to gain even more experience.

Most CEO jobs require about a decade of related experience in management, often working through other c-suite executive positions, before landing a CEO role. 

What skills do you need to become a CEO?

CEOs should have a thorough understanding of the inner workings of corporations, business operations, human resources, and general management. They should have top-notch negotiation and persuasion skills, confidence, a keen eye for detail, and the ability to set goals as well as put together a plan of action to achieve them. 

A CEO’s main set of responsibilities involve communication on every level — with fellow executives, board members, shareholders, their employees, and the public at large. They should be able to communicate effectively, employ a variety of leadership skills, have an understanding of their ethical responsibilities, as well as be able to coordinate and execute strategic plans for their business.

A CEO’s responsibilities vary greatly, but in general, they should be able to multitask, prioritize, problem-solve, and make concrete decisions while maintaining a level of flexibility to change course when necessary. 

What is the average salary for a CEO?

The average salary for a CEO can vary greatly across industries. For example, a CEO in the tech sector may make upwards of $26.3 million annually, per S&P Global, while the U.S. Bureau of Labor Statistics (BLS) reported that CEOs in manufacturing made an average of $274,380 in 2020.

In addition to the industry that a CEO’s business is in, the size of the company also matters when it comes to salary. USA Today reported that CEOs across America’s top 350 companies made an average salary of $14.5 million in 2019. When it comes to small and mid-sized companies, CEOs typically make between $100,000 and $400,000 annually, according to Payscale. 

What is the typical career path for a CEO?

The career path for every CEO is different. It varies depending on what type of business a CEO wishes to manage and what their exact experience is. While many will start by obtaining the requisite education and rising through themanagement and executive ranks over a period of time, some step into the role when they start their own business.

Although CEOs can be promoted from within the ranks of a company, there are businesses who wish to hire outsiders to step in and fill a CEO position, especially during times of restructuring or reorganization. CEOs are often elected by a company’s board of directors and its shareholders. Some CEOs also hold a seat on their company’s board, often as chairperson of the board. CEOs are sometimes also called president or managing director.

A CEO can specialize in different areas of operations such as account management, operations, communications, and public relations, technical services, and more. Depending on where a CEO’s expertise lies, different companies may leverage their experience when making hiring decisions in order to find the best fit for their specific needs.

Where to find CEO jobs?

While the BLS projects that the employment of chief executives may see a 10% decline over the next decade, there are still plenty of job prospects out there for individuals in the market for a CEO role.

Take a look at some of the current job openings for CEOs on Ladders now.