Chief Executive Officer (CEO): Definition, Role, Duties and Responsibilities, Up to Salary

Who does not know the term CEO? This position is certainly familiar to everyone who works in a company.

The CEO is the leader who determines the success or failure of the company. In addition, the CEO has a great influence on the company's reputation. Therefore, these positions must be filled by selected people.

Then actually is it the CEO or chief executive officer? Let's get to know him deeper in the article below!

What is a Chief Executive Officer (CEO)?

Heru Setyaka, in his book Top CEO, Rich Salesman, says that the term CEO is used to refer to a very important position in a company. The CEO is said to be important because this position affects the operations of the entire company organization.

CEO is the highest position in the company and his job is to lead the company. In addition, he is responsible for the stability of the company he manages.

However, in practice, the use of the term CEO is often different, especially in relation to management and organizational structure. Heru said that the biggest difference can be seen in companies formed by individuals in the form of individuals and so on.

For example, there is a CEO who is also the general manager and director of the company, so he has great authority within him.

On the other hand, there is also a CEO whose position is like "Prime Minister". They carry out their duties in managing the company and are responsible to the Management Board. In a corporation, the board of directors is elected by the shareholders.

Main Role of Chief Executive Officer

Usually, the CEO is responsible for leading, motivating, and developing the team so that the business stays in line with the company's strategy, vision, and mission. However, the role of the CEO is not necessarily the same in all companies. This is adjusted to the size, culture and structure of the company.

In large companies, the CEO is usually only concerned with high-level strategic decisions and everything related to the company's growth. For example, business strategic planning and operational decision making by top management. In small companies, the CEO is often more active and involved in day-to-day operations. For example, participating in staffing, creating jobs for the team, and so on.

You know? Basically, the CEO is more involved in strategic matters, such as meetings with managers or other meetings.

According to a Harvard Business School study, CEOs spend 72% of their workday in meetings. Usually, various plans and strategies result from these meetings to further develop and adapt your business model.

The CEO is also considered the face of the company he manages. No wonder the CEO has a wide social circle and many people know him.

Elon Musk, for example, is a character synonymous with Tesla. As seen in the media, Elon Musk often gives interviews, appears on radio and television, and attends local events (seminars). This shows that the CEO does not only work within the corporate environment, but also needs to build a good image in the eyes of the public.

CEO Duties and Responsibilities

Quoted from the Corporate Finance Institute that there is no fixed limit for CEO duties. But in general, the CEO has the following duties and responsibilities:

• Communicate on behalf of the company, with shareholders, government and the public.

• Lead the development of the company's short and long term strategies.

• Creating and implementing the company's or organization's vision and mission.

• Evaluate the work of other executive leaders in the company, including directors, vice presidents and presidents.

• Maintaining the company's performance against competitive market situations, expansion opportunities, industry developments, and others.

• Ensuring that the company maintains high social responsibility wherever it does business.

• Assess risks to company plans and ensure they are properly monitored.

• Setting strategic business goals for the long term.

Company Chief Executive Officer Salary

The base salary of the CEO and CTO depends on the startup's financial stage. Their income increases according to the support they receive.

In Indonesia, the average monthly salary of CEOs ranges from 0 to 5 million USD in the financial stage, which is 2000 USD or around 29 million rupiah. At today's exchange rate, it is 29,9 million rubles (exchange rate 14.996 rubles).

Information on CEO salary ranges was published by private equity firm Monk's Hill Ventures and recruitment firm Glints in a report entitled The Southeast Asia Tech Talent Compensation Report.

Now you know the meaning of CEO, right? These are not just abbreviations or general terms. Maybe for those of you who are looking for a career, there's nothing wrong with dreaming of a CEO career. Hopefully achieved, yes!