CEO or chief executive officer is a position in Corporate and Start-ups. CEO act as a bridge between Investors and company professionals. But, What is the full form of CEO?
CEO Full Form stands For “Chief Executive Officer”. Also CEO Full Form In Hindi is “मुख्य कार्यकारी अधिकारी”. The CEO job is treated as a very glamorous job. The Chief executive officer or CEO is a very sought out position. Everyone wants to be a CEO, but it’s not as easy as it looks. Let’s have a look at life about the CEO.
Average Salary is $810,710 per Annum in the USA.
Salary of CEO
CEO salary is quite high as he is the sole person responsible for running the Company smoothly and create profits so that the Company can be self-sufficient and generate enough funds for its working and function. The Average Salary of a Chief executive officer is $ 810,710 in the US. The salary ranges from $600,000 to $1,000,000 per annum. Some CEOs gets very high Salary compared to others. Their income can easily cross multi-million dollars per annum. Mr David M. Zaslav, CEO of entertainment network Discovery, Inc. was a great example of this. In 2018, he was paid $129.4 Million. Quite a big amount, isn’t it?
Work of CEO
Chief executive officer act as a Bridge between investor and organization. CEO is appointed by the Board of the director of the Company. Board of Director advice CEO and help him to run the Company. CEO is also called as Face of Company. He can make a company or even break the Company. With the right CEO, a company can increase its income by manifold. A CEO has to keep tabs on all working sectors in the Company. CEO needs to make sure that the Company is not running out of the fund and have enough fund in his disposal.
A CEO also needs to hold talks with engineers and other critical members while discussing strategy with them. The Chief executive officer needs to know about the development of the product and about its working very clearly. He approves new product development with advice from the Board of directors. The work of the CEO is very hectic as he/she needs to make a balance between his company aspiration and investor targets.
How to become a CEO in 2020
There are two ways to become a CEO-
1. Start your own Company and Retain the position of CEO.
2. Work hard and let Board of Directors Appoint you as CEO of the Company.
The easiest way to become a CEO is to start your start-up. For it, you need to register your start-up as a Private limited company. After registering your Company, you should try to launch the Company as soon as possible. Your company board of directors can change the CEO if needed, but it’s infrequent as in initial time, the co-founders are the Board of directors in the Company.
However, after raising fund and giving away new Board of director seats, things can change. If the new Board of directors is not happy with your performance, then they can boot you out from CEO position as voting right alter after company shares get diluted.
The second method to become the chief executive officer is to work hard throughout a company for a long time and have a clean track record. After getting enough experience and excellent work experience, one can become CEO in MNC. The Board of the director will give you heed if you have done some phenomenal job during your working throughout company tenure. Most of MNC and fortune 500 companies select their CEO in this manner.
However, there is one thing to note. CEOs of MNC and fortune 500 gets the most benefit and power compare to start-ups CEOs due to unavailability of huge funds and revenue.
Advantages and Disadvantages of CEO in Company?
The advantages of the CEO are as follows:-
- Salary:- The first and foremost thing is the salary which is discussed above also. As the CEO is the topmost designation in the company or organization. So, he/she will have/earn the highest salary among other employees in the company. But, the salary can differ from company to company.
- Freedom:- The CEO of the company has the freedom and he/she is free to set their own schedules or define the strategies of the organization or the company. The CEO has the power to make all the important decisions regarding his/her company or organization.
- Reputation:- If you are a Chief Executive Officer(CEO) of a company then you are considered as a reputed person as an individual in the company as well as in the society. Also, CEO holds the complete information about the financial and operational position of the business which also increases the experiences as an individual.
The disadvantages of Chief Executive Officer (CEO) are as follows:-
- Face of the company:- As CEO of the company holds the reputation of the company or organization due to the name and fame of the company. But, if the company faces loss in any of the fields like financial position or any other so it can directly give a negative impact on the person who is the CEO of the company.
- Stress and Depression:- As the CEO of the company you have the greatest responsibility to handle your company and achieve a good position in the market and progress day-by-day. But, sometimes due to some unusual event like natural cause any change in market policy the company can suffer loss and the CEO can go in the depression. So, the CEO handles a lot of stress sometimes.
- Lot of Paperwork:- There is a lot of paperwork and hiring and firing duties when you become a CEO of a company as this is told by many of the CEO of the different companies.
FAQ On CEO
Q1. Is there any age Limit for being CEO-
Ans. To be a chief executive officer, you need to have approval from the Board of directors. You need to be a minimum of 18 years of age. Some countries, the period can differ though.
Q2. Does every CEO make so much money?
Ans. It depends largely on each organisation. It depends on how much capital the organisation possesses. Big organisations pay heavily, but in the case of bootstrapped start-ups, the things are different as they don’t have funds for CEO salary.
Q3. Is the CEO most powerful person in the Company?
And. Yes. Chief executive officer is the most influential person in a company. However, he can be replaced by a board of directors. The real power is possessed by the Board of directors.
Q4. Is the CEO job is the best?
And. The answer is not so straightforward. It depends. In terms of power and money, it is very significant; however, the workload and stress level is very great also. It all depends on the person and his passion for the work.
Q5. What is full form of CEO?
Ans:- CEO full form is Chief Executive Office. Which is top most position of any registered Company
Written By- Aditya Soni
We Hope you have clear about CEO, CEO full form, CEO Salary, Work of CEO, How To Become CEO and FAQ’s on CEO.