Get to know the Chief of Executive (CEO) Profession, Duties, Responsibilities and Skills Required

What does CEO mean? Maybe you are also familiar with the term CEO, because with the development startup In Indonesia, the word CEO is also being heard more and more.

However, do you know what a CEO is and what are the duties and responsibilities of a CEO in a company?

Come on, see more about the CEO discussion in the following article!

What is a CEO?

To build a company, of course, there are many positions that must be formed in order to run the business that you are living. Usually we are more familiar with the company structure as leaders, leaders and members. However, this leadership position also turns out to have various names, you know! One of which is chief executive or CEO.

CEO or chief of officers is the highest position in a company. Usually the use of the word CEO is used in startup companies or companies startup. Definition CEO is a position for the highest member who has the duty and role to oversee and also carry out the company's vision and mission to achieve success.

In addition to supervising the company, the CEO also plays a role in ensuring that your company's budget is always available and also that several CEOs in the company have the authority to recruit and retain the best employees.

CEO difference, owners, and also the director

Maybe some of you are also familiar with the words director and owner, because these two positions both fill the top position. However, do the CEO, director, and owner is it the same or different?

Well, it turns out that CEO and director are the same, you know! The use of the word CEO is usually used by companies startup or companies that have an external culture. Whereas, director term it is usually used by conventional companies or companies corporate.

This has also been stated under Indonesian law and according to the Decree of the Minister of Transmigration and Manpower Number 40 of 2021, the CEO position is better known as directors, commissioners, and executives. 

So, it can be said that CEO and director are the same position, only that the names are different according to the company's culture.

What is the difference between CEO and owner?

Quoted from Huntclub, owner are individuals who start a company and build it from the planning stage to making a profit. Usually also a owner will have quite extensive knowledge related to marketing and products of the business he is developing, because he is the first person to build his business.

Therefore, a owner or a business owner is also reasonable to have an opportunity to own his business 100% if the owner is sole. Like Kylie Jenner on Kylie Cosmetics stake, before 51% to the Coty company. However, if a business is founded with the help of another partner, then that partner becomes a co-owner.

Owner of and also the CEO can be held by one person at a time, usually this happens when the company has not developed much. However, it can be different if a company is successful then the company is able to recruit a CEO.

An owner can serve as well as a CEO, this often happens if the business developed is not too big and the company has not been able to recruit a CEO. So, business owners can become CEOs, but not all CEOs can be owner or business owner.

CEO and owner at the company

To lead a company, the CEO also has a list of other duties and authorities that you should know, such as the following:

• The CEO has the responsibility to oversee the company's budget
• Setting the company's strategic direction
• Leading the company, setting revenue and productivity goals
• Representing the company's public image
• Determine the vision, mission, and direction of the company
• Reviewing and analyzing changes in the economy and industry of a company.

Meanwhile, for those of you who serve as owner in the business that you develop, apart from being the owner, you also have other roles.

If the CEO has a big role to maintain the company's image. So, this only applies if you have been able to recruit a CEO for your company.

However, it is not uncommon when the responsibilities and duties owner it's usually unwritten, sometimes your role as owner can also be erratic. However, usually owner will help the CEO to monitor operations, to the company's human resources. So, you will have more discussions with the CEO.

Not only that, owner will also build the vision and mission of a company in accordance with the standards and industry. If, there is a business loss too owner who will be responsible.

What is the salary of a CEO in Indonesia?

Occupying the highest position in a company, it must also make you wonder how much, anyway, CEO's salary in Indonesian company?

Quoted from OCBC NISP With a big enough responsibility, CEO salaries in Indonesian companies in 2021 could reach IDR 130 to IDR 250 million per month. If calculated per year, the CEO will get an income of IDR 1,5 to IDR 3 billion.

However, you also need to know that such a large salary can you get if you work in a companyunicorn startup. In Indonesia alone there are 12 unicorn startup namely GoTo, Xendit

Wonderful, Bukalapak, Tokopedia, JD.id, Blibli.com, Traveloka, Ovo, Kredivo, J&T Express, and Kopi Kenangan.

Skill CEO must have

Not just anyone can be CEO, because to lead a company is not an easy thing. You must have skill qualified, especially in terms of leadership. Then, some skill below you must also apply if you want to become a CEO.

1. Creativity and innovation

Having creative thoughts and new ideas can make a business grow in the long term because innovation can make a company more progressive.

2. Courage

By having skill know no fearinstilling quality in employees, because the CEO will be faced with challenges. If you don't have a sense of courage how can the CEO find creative and profitable solutions for the company.

3. Have skill strong communication

In carrying out his role, a leader will convey messages or instructions effectively. Effective messages conveyed by high positions to employees can minimize misunderstandings and also provide a motivational factor. Because, communication plays an important role in daily tasks and responsibilities.

4. Innovation and creativity

To develop a company with a long period of time, you as a CEO must be able to think creatively and have high innovation so that you can get lots of ideas about the business that suits your business, because a CEO who can think creatively and innovate can benefit his business.

5. Must be able to work in a team or collaboration

Being a CEO, you will not work independently, sometimes you will work together with business owners or ranks c-suites others such as the board of directors and other department heads. This collaboration will produce the best information and ideas to advance the company, because collaborating can also create high creativity.

How to become a CEO

Once you feel enough to have skill that fits the CEO criteria, you might be wondering how how to become a CEO? Well, to achieve this position there are usually two ways you can do, namely:

1. Build your own company

You can build a startup from scratch with commitment and determination. If the company you are developing can run smoothly with your leadership then you can already be called a CEO.

2. Career growth

Going down the career growth path does take years. However, by gaining experience and knowledge when you move up in the same company, you willprovide more superior value. Usually also the editorial board of the company will be moreselecting internal candidates to become a CEO versus an external candidate. 

Apart from the two points above, there are also several ways that can help you achieve a position as CEO, namely:

1. Have professional certification

Having a professional certification in the appropriate field can also help you get a high qualification, because certification is also very useful for developing the company that you will later live for.

Quoted from the site Leverage Edu There are several professional certificates that can help you become a CEO including: Chartered Financial Analyst (CFA), Certified Management Accountant (CMA), Certified Public Accountant (CPA), and Project Management Professional (PMP).

2. Take education

Indeed, anyone can become a CEO. However, having a bachelor's degree can increase your qualifications. In fact, quoted from Forbes, half of Fortune 100 CEOs have earned accounting, business, and economics degrees. Meanwhile, 27% hold a bachelor's degree in science and engineering, the remaining 14% take legal education.

Inspirational CEO

1. Ifandi Khairum Ranin

One of Indonesia's young CEOs and founder from startup engaged in education, namelyOne Percent. One percent was built by Ifandi in 2019 with the format channel Youtube. Previously he only often shared content related to education, mental health, and self-development on his personal Youtube account since 2018.

2. Hanifa Ambadar

Female Daily, one of the largest women's forums in Indonesia. You must also be familiar with Female Daily.Beautytech this has been around since 2005 which at that time was still based on blogs. However, now Female Daily has an app and beauty studio with 50 million followers with 4 million uniqueuser per month.

3. Pete Cashmore

Mashableis a blog-based website that focuses on technology and entertainment, was founded by a young boy named Pete Cashmore. Mashable was founded in 2005, which meant Cashmore was 19 years old at the time.

4. Kylie Jenner

Kylie Cosmetics was founded in 2015 and in 2018 Kylie Cosmetics already earned $360 in sales. Then, some time after that Forbes also stated that Kylie Cosmetics had a valuation of $800. This makes Kylie Jenner the youngest billionaire.

Well, that's an explanation of the definition, duties, salary and skill that a CEO should have. Although, the salary of being a CEO is quite large, but the workload is quite heavy and everything must be done gradually.

The inspirational CEO above also proves that young people can occupy the CEO position by having creative thinking and high innovation to develop.