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Chief Executive Officer job description

A Chief Executive Officer runs the whole company and answers to the board for its results. They set the strategy, build the leadership team, own the profit and loss, and decide how the company spends its money and its time. The role balances growth, cash and culture, and makes the hard calls that no one else can. A good CEO sets a clear direction, hires and holds a strong leadership team, delivers the numbers the board approved, and keeps the company financially sound.

DetailFor this role
DepartmentLeadership and Senior Management
LevelLeadership
Reports toBoard of Directors
Direct reportsChief Financial Officer, Chief Operating Officer, Chief Human Resources Officer, Chief Marketing Officer, Chief Technology Officer
Experience20+ years across functions, with several years in a general management or P and L role

Chief Executive Officer job description template

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Job title: Chief Executive Officer

Department: Leadership and Senior Management

Reports to: Board of Directors

Location: [City], [office, branch or site]

About the role

A Chief Executive Officer runs the whole company and answers to the board for its results. They set the strategy, build the leadership team, own the profit and loss, and decide how the company spends its money and its time. The role balances growth, cash and culture, and makes the hard calls that no one else can. A good CEO sets a clear direction, hires and holds a strong leadership team, delivers the numbers the board approved, and keeps the company financially sound.

Key responsibilities

  • Set the company's strategy and annual plan with the leadership team, and get them approved by the board.
  • Own the profit and loss, and hold each function to its revenue, cost and cash targets through the year.
  • Build the leadership team, decide who leads each function, and replace leaders who do not deliver.
  • Allocate capital and headcount across businesses, weighing growth, risk and the return on each rupee.
  • Represent the company to the board, investors, large customers, regulators and the press.
  • Set the culture and values, and make sure the company hires, promotes and rewards in line with them.
  • Approve major decisions on pricing, fundraising, acquisitions, new markets and large contracts.
  • Monitor the numbers monthly, and step in early where a function is drifting off plan.
  • Manage risk across the business, and keep the company compliant with law and its own governance rules.
  • Report progress, wins, misses and the outlook to the board at every meeting.

Requirements

  • MBA or a strong record of running a business
  • Graduate degree in any discipline
  • Deep experience in the company's own industry is an advantage
  • 20+ years across functions, with several years in a general management or P and L role

KRAs and KPIs for a Chief Executive Officer

Key result areas for the appraisal form, each with a KPI you can measure every month or quarter.

Key result areaHow to measure it
Business performanceRevenue and profit meet or beat the board-approved annual plan
Cash and fundingCash runway and funding kept above the level agreed with the board
Strategy deliveryAgreed strategic milestones for the year completed on time
Leadership strengthKey leadership roles filled and retained above the target
Governance and riskNo major compliance or governance failures during the year
CultureEmployee engagement and senior attrition within the agreed limits

Skills and tools

StrategyP and L ownershipCapital allocationLeadership team buildingBoard and investor relationsDecision makingRisk managementCommunication

Tools used day to day: Board reporting packs, BI dashboards, MS Excel, PowerPoint, Financial models.

Reporting line and career path

Board of DirectorsChief ExecutiveOfficerChief FinancialOfficerChief OperatingOfficerChief Human ResourcesOfficerChief MarketingOfficerChief TechnologyOfficer
Moves up from: Chief Operating Officer, President, Business Head
Next roles: Managing Director, Board of Directors

Interview questions for a Chief Executive Officer

  1. How would you set the three-year strategy for this company in your first hundred days?
  2. The business is growing but burning cash faster than planned. What do you change first?
  3. How do you decide which businesses or products to invest in and which to shut down?
  4. Tell me about a leadership team you built and how you handled a leader who was not delivering.
  5. How do you keep the board informed without letting it run the company day to day?
  6. Describe the hardest decision you made as a chief executive and how it turned out.

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Frequently asked questions

What does a Chief Executive Officer do?

A Chief Executive Officer runs the whole company and reports to the board. They set the strategy, build the leadership team, own the profit and loss, allocate capital, manage risk and represent the company to investors and customers. The CEO makes the final call on the biggest decisions and is judged on the company's results.

What is the difference between a CEO and a Managing Director?

In India a Managing Director is a statutory role under the Companies Act, a director entrusted with substantial management powers. A Chief Executive Officer is the top executive title. Often one person holds both. Where they differ, the Managing Director carries the legal responsibility while the CEO title describes the executive job.

Who does a Chief Executive Officer report to?

A Chief Executive Officer reports to the board of directors, usually through the chairman. The board sets targets, approves major decisions and evaluates the CEO each year. In a founder-led company the founder may hold the CEO role and still answer to the board and investors for results.