Chief Executive Officer (CEO) Career Guide

What is a chief executive officer?

A chief executive officer (CEO) is the top boss of a company. They make the big decisions, decide where the company is heading, and set important goals. They work with a group of people called a board of directors who help guide the company. CEOs aim to grow the company, make it valuable, and ensure it has a positive impact on society.

Duties and responsibilities

CEOs have a lot on their plate. They plan the company’s big-picture strategies, decide how to use resources like money and people, and choose who to partner with in business. They also keep up relations with important people outside the company, like investors and other business leaders.

They don’t just make plans; they also handle everyday stuff that affects the company’s direction and success.

Work environment

Being a CEO is a tough job with a lot of pressure. They usually work in offices, either in busy cities or online from anywhere. No matter where they are, they need to make quick and smart decisions. They meet a lot of people, travel a lot, and need to be good at working with different cultures, especially if their company works around the world.

Typical work hours

CEOs don’t work regular hours. They often work more than the usual 40 hours a week, including nights and weekends, because their job is so important. They also need to be ready to work at odd hours if they deal with people in different time zones. Even though they’re always busy, being good at managing their time helps them keep some balance between work and personal life.

---

How to become a chief executive officer

Becoming a CEO isn’t just about being a great leader; it’s about building the right skills and experience from the ground up. Here’s a step-by-step guide to achieve your goal:

Step 1: Earn a bachelor’s degree

Start with a bachelor’s degree in business, finance, economics, or something similar. This gives you the basics of how businesses work, including managing money and planning for the future.

Step 2: Work your way up

You need lots of experience in different parts of a business like sales, marketing, or finance. Start in entry-level jobs and aim for positions with more responsibility over time. This helps you understand the business better and learn how to lead.

Step 3: Develop leadership skills

A good CEO needs to be a strong leader. Look for chances to lead teams or projects. This is how you learn to set goals, make big decisions, and guide a company’s direction.

Step 4: Consider a master’s degree (optional)

Some companies like their CEOs to have a master’s degree or an MBA. This can teach you more advanced stuff about business strategies and operations.

Step 5: Boost your communication skills

Being a CEO means talking effectively to all sorts of people, from employees to big investors. Work on speaking clearly, listening well, and understanding others. Online courses or workshops can be great for this.

Here are some of our recommendations:

• Cross-Cultural Communication and Management teaches you to understand culture’s role in communication to create a new, collaborative language style. 
• Coursera’s Good With Words focuses on overcoming stage fright and gaining confidence to pitch ideas, negotiate more creatively, and become a better listener. 
• Emmy winner and Reading Rainbow host LeVar Burton’s MasterClass highlights his techniques for more dynamic, authentic storytelling to connect with any audience. 
• Udemy’s Emotional Intelligence: Everyday Empathy at Work builds communication skills, empathetic techniques, and active listening for leading teams.
• Active Listening 101 offers proven techniques for mastering listening skills and using maximum engagement to connect with others. 

Step 6: Network like a pro

Make connections with other business people, like industry leaders and mentors. Go to business events, join groups, and keep up with the latest business trends. These contacts can offer advice and opportunities that help you move up.

Step 7: Gain executive experience

Before you can be a CEO, you usually have to be something like a COO (chief operating officer) or CFO (chief financial officer). These high-level jobs prepare you to take on the top job.

Step 8: Go for the CEO job

Once you’ve got the right education and experience, start applying for CEO jobs. Make sure your resume and interviews show off your skills and past successes in leadership.

Step 9: Keep learning

Stay sharp by attending workshops and seminars, or taking online courses. Joining groups for executives can also keep you informed and connected.

---

How much do chief executive officers make?

The compensation of a CEO can vary greatly depending on many factors. Larger organizations generally pay significantly more than smaller firms. Similarly, the industry in which the company operates can substantially influence their salary. Top tech, finance, and healthcare execs typically earn more due to these industries’ complexity and high profitability.

Additionally, the organization’s financial performance and market capitalization can impact CEOs’ compensation, with bonuses and stock options often tied to company performance metrics.

Their location can also play a big role. For example, jobs in major metropolitan areas with a high cost of living and increased business activity, such as New York or San Francisco, often earn pay than those in smaller markets.

Highest paying industries

• Finance: $235,070
• Computer Manufacturing: $208,000
• Aerospace Manufacturing: $208,000
• Monetary Authorities: $208,000
• Advertising: $208,000

Browse CEO salary data by market

---

Types of chief executive officers

Here’s a look at some common types of CEOs:

Startup CEO

These CEOs run new companies that are just starting out. They have a lot of different jobs like finding money to run the company, building a team, figuring out how to compete in the market, and growing the business. It’s all about being flexible and ready to handle lots of challenges.

Nonprofit CEO

Running a nonprofit means focusing on making a positive impact rather than just making money. These CEOs need to keep the organization true to its mission while also making sure it has enough money to operate. They work closely with donors, volunteers, and the community to keep everything running smoothly.

Corporate CEO

These CEOs manage big companies that often work in several countries. They spend a lot of time talking to important people like other top bosses and board members to plan the company’s big moves and make sure it’s doing well financially.

Small business CEO

These CEOs run smaller companies that have a few employees and aren’t as big as huge corporations. They’re past the startup phase but still need to be very involved in everyday business. They focus on increasing sales, managing the team, and keeping the business steady.

Healthcare CEO

CEOs in healthcare run hospitals or other health services. They deal with a lot of rules and need to keep up with new tech and ways to care for patients. It’s a big job that involves making sure patients are safe and the organization runs well.

Tech industry CEO

Tech CEOs lead companies in a field that changes really fast. They need to keep up with new ideas and protect their inventions while managing quick growth and competition. It’s all about innovation and staying ahead in a tough market.

---

Top skills for chief executive officers

Here are some of the most important skills a CEO needs:

Strategic thinking

CEOs need to see the big picture. They think about the future of the company, understand market trends, and figure out how to stay ahead of competition. This means planning long-term goals and making sure the company is going in the right direction.

Leadership

These execs set the tone for the company culture and values. They must be good leaders to inspire and motivate their team. Strong leadership helps keep everyone focused and productive, and it’s also key in managing resources and balancing what different people in the company need.

Decision-making

Making decisions is a huge part of their job. They face tough choices that can really affect the company. A good CEO can look at different options, think about their possible effects, and make smart choices even when things are uncertain.

Communication

CEOs must be excellent communicators. They need to clearly share their vision with the team, motivate their employees, and build good relationships with people like customers, investors, and the media. Good communication helps everyone understand the company’s goals, work better together, and stay positive during changes.

---

Chief executive officer career path

Becoming a CEO doesn’t happen overnight. It’s a journey that starts from the ground up in business-related jobs and involves several steps:

Start in a foundational role

Begin your career in areas like sales, marketing, operations, finance, or even engineering, depending on what the company does. This stage is all about learning how different parts of a business work together and how they contribute to the company’s success.

Move up to management

As you gain experience and show you can lead, you might move up to manage a team. You could become a department manager, product manager, or regional manager. These roles let you get involved in planning and give you more responsibility.

Step into senior management

With strong performance and a good grasp of business, you can rise to higher positions like vice president or director. Here, you’re part of the top team that steers the whole company, responsible for big parts of the organization and its overall strategy.

Develop leadership and management skills

To be a CEO, you need to excel at leading people and managing resources like money and technology. You should create a work environment that supports new ideas and teamwork. Strong communication skills are crucial to work well with your team and connect with people outside the company.

Advance to executive roles

In roles like VP or other executive positions, you oversee large areas of the company and have a direct say in the corporate strategy. These roles are a big step toward becoming a CEO.

Become a CEO

After gaining lots of leadership experience and proving your ability in previous jobs, you might be promoted or hired as a CEO. Now, you’re in charge of setting the company’s direction, making major decisions, and making sure the company achieves its big goals.

---

Similar job titles

• Chief Operating Officer
• Chief Financial Officer
• Chief Information Officer
• Chief Technology Officer
• Chief Marketing Officer
• Chief Human Resources Officer
• Chief of Staff
• Director of Operations
• General Manager
• Vice President of Administration

---

Chief executive officer position trends and outlook

Here’s a look at some key trends and what the future holds for those aiming for this top position:

• Engagement with a broader range of stakeholders: Nowadays, CEOs are expected to connect not just with shareholders but also with employees, customers, communities, and society at large. This shift shows that businesses are increasingly judged not only on financial performance but also on their impact on the world around them.
• Emphasis on digital transformation: These execs need to use technology to make their companies more efficient, create new products, and improve customer service. Leading a company through these changes requires a strong focus on learning new things and adapting quickly.
• Commitment to sustainability: They are also steering their companies toward being more environmentally and socially responsible. This involves making decisions that are good for the planet and for people, which can also help the company’s image and bottom line.

Employment projections

Although specific numbers for CEO jobs are not detailed, they are part of the broader category of “Top Executives,” expected to grow by 6% through 2031. Becoming a CEO is highly competitive, as it is a top-tier position. Those who have managed digital transformations well and have pushed for diversity, equity, inclusion (DEI), and sustainability in their companies will stand out.

---

Chief executive officer career tips

Understand your business inside out

You must know every aspect of the business, from daily operations to the broader market environment. This comprehensive knowledge helps make smart decisions, plan strategically, and lead the company effectively.

Foster a strong company culture

The culture within a company greatly influences employee happiness, productivity, and loyalty. You have the power to shape this culture. Create an environment that reflects the company’s values, promotes teamwork and innovation, and supports employee development.

Be an effective communicator

Good communication is crucial for a CEO. You need to clearly share your vision and plans with your team, board, shareholders, and other stakeholders. Strong communication fosters better alignment, engagement, and cooperation across the company.

Develop your leadership skills

These execs need to be more than managers; they must be leaders. This involves inspiring your team, making difficult decisions, and setting an example. Great leaders are also good listeners who value feedback and are willing to learn from everyone, including their employees.

Embrace continuous learning

The business world constantly changes, so staying informed and continually improving your skills is vital. Keep learning by:

• Reading relevant books and articles
• Participating in executive education or leadership seminars
• Networking with other business leaders to gain insights from their experiences

Build your network

Networking can provide crucial opportunities for growth, collaboration, and business development. To connect with other leaders, join professional groups like:

• Young Presidents’ Organization (YPO)
• Vistage
• The Chief Executive Network (CEN)

Practice strategic thinking

You’re responsible for the strategic direction of the company. This requires long-term thinking, an ability to analyze market trends and data, and skills in spotting opportunities and risks. Strategic thinking helps in making informed decisions that ensure the company’s long-term growth and stability.

Prioritize corporate social responsibility

Today, it’s important for companies to not only be profitable but also make a positive impact on society and the environment. Prioritizing corporate social responsibility can include adopting sustainable practices, promoting diversity and inclusion, and engaging in community development.

---

FAQs