Chief Executive Careers
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The average value of the Bachelor degree needed to become a Chief executives is $3,075,917.00.
Points of Interest
- Because of the prestige and high compensation associated with chief executive jobs, keen competition is expected among a substantial number of applicants.
- Chief executives are among the highest paid workers within a company • Intense pressure to succeed, long hours and considerable travel are common expectations.
- Many chief executives have a bachelor’s degree and many years of experience, although the formal education and experience varies.
Nature of the Work
Every business corporation has goals and objectives it wishes to meet in the market. Chief executives are responsible for devising the strategies and policies that ensure those goals and objectives are met. A wide range of titles are associated with chief executive positions – chief executive officer, chief operating officer, general manager, president, vice president, county administrator, school superintendent, mayor – all are responsible for formulating policies and directing business operations and corporations, nonprofit institutions, public organizations, and other organizations.
Chief executives collaborate with other executives within a company to establish the goals and policies of the organization. A board of directors monitors the activities of these executives. The chief executive officer frequently meets with other top executives in a large corporation, ensuring that the overall operation of the company continues on the right path to meet goals and according to policies. In nonprofit and governmental organizations, chief executives are responsible for overseeing budgets, ensuring that resources are allocated properly, and that all programs are carried out according to plans. Chief executives in the government usually nominate local citizens to sit on boards and commissions. They also work to encourage business investments to promote economic development within the community. A highly skilled staff is required to assist chief executives with completing these varied tasks as effectively and efficiently as possible.
Additional Responsibilities
While the chief executive officer has overall accountability for the entire organization, the chief operating officer often has several responsibilities delegated, including having the authority to manage other executives who are responsible for directing departmental activities and implementing guidelines on a day-to-day basis. The board of directors or a similar governing body in publicly held corporations and nonprofit organizations is accountable for the success or failure of the company, with the chief executive officer reporting to the governing body. Additionally, top executives, namely the chief financial officer, are accountable for the financial reporting made by the corporation. This is especially true for companies that are publicly traded because of SEC and Sarbanes-Oxley regulations.
The size of the organization determines the nature of the responsibilities designated to other high level executives. Small organizations such as independent retail stores or manufacturers will have a partner, owner or general manager who is responsible for day-to-day supervisory activities including hiring, training, quality control and purchasing. Large organizations require top executives to direct the overall organization, and implement strategies to set the direction of a particular area within the company. An example of this is where chief financial officers direct the financial goals, objectives and budgets of the entire organization. They also every aspect that pertains to the organizations solvency: investment funds and manage risks, supervise cash flow management activities, the execution of strategies for raising capital for expansion, and mergers and acquisition deals.
Chief Information Officers
The responsibilities of chief information officers include the technological direction of the organization. The increasing use of information technology in practically every area of a business has increased the importance of the chief information officer in organizations. They require the knowledge of how the entire organization works to determine how effective technology can be for performance and processes. These chief executives propose budgets for projects, programs, the purchase of equipment and staff training. They also hire and supervise computer specialists, information technology workers and support staff for information technology related projects. They review employee input and establishes administrative procedures and policies. Chief information officers are also important for providing a vision for how mastering information technology as a competitive tool is good for the organization.
Management Responsibilities
General and operations managers are responsible for planning, directing and coordinating the operations of companies, including public and private sector organizations. The duties and responsibilities of these chief executives include the formulation of company policies, management of daily operations, and the planning of diverse and general materials and human resources such as personnel, purchasing and administrative services. The duties of general and operations managers might overlap with the chief executive officer in some organizations.
Working environment
Chief executives in large organizations usually have spacious offices and numerous support staff to assist them throughout their work day. Long evening and weekend hours are the norm for many chief executives, although most have flexible schedules.
Considerable travel is required for chief executives and general managers in order to monitor operations and meet with staff, other executives and customers at local, regional, national and international offices. Many chief executives also have obligations to attend meetings and conferences associated with various associations. For chief executives on an executive career track, transfers between offices and subsidiaries are a common practice.
The enormous pressure to make a company successful is an ongoing requirement for chief executives. Success can lead to higher profits, better service to customers, or reaching charitable and fundraising goals. For chief executives who are at the helm of a poorly performing organization, job security is a concern.
Training, Other Qualifications, and Advancement
Most chief executives hold at least a bachelor’s degree, although the formal education and work experience required varies nearly as much as their responsibilities.
Education and Training
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Most of the chief executives at private and public organizations have a bachelor’s or a master’s degree in business administration, liberal arts, or a specialized discipline. The type of organization usually determines the specific type and level of education that a chief executive should possess. For example, school superintendents and college presidents have a doctorate in their original teaching field or in education administration. However, a doctorate is typically not required for a nonprofit or private corporation.
There are some chief executives in the public sector with degrees in public administration. Others usually have a specific educational background that is related to their jobs.
Most chief executive positions are filled from employees in the organization through promoting lower level managers and succession planning. In some industries such as retail or transportation, employees could work their way up to become a general manager without having a college degree. If a chief executive is hired from outside the organization, candidates with extensive managerial experience are preferred.
Other Qualifications
Chief executives should have highly developed personal qualities and people skills for communicating clearly and persuasively. Having an analytical mind to quickly analyze large amounts of information and data, with the ability to evaluate the relationships between numerous factors are also important qualities for chief executives. Leadership skills, self-confidence, decisiveness, motivation, flexibility, sound judgment of business practices, and determination to succeed are also important qualities.
Employment
Nearly 2.1 million positions were held by chief executives in 2008. Over 1.7 million were in general and operations manager positions; 400,400 were the C-suite positions.
Certification and advancement
Advancement can be accelerated through participation in training programs that present extensive knowledge of company policy and operations. Conferences and seminars geared towards the national and international issues influencing an organization will help participants gain a network of contacts. Many companies have executive development programs for managers to build on existing skills.
Staying abreast of the latest trends in management through national and local training programs offered by executive training organizations is another way that chief executives can strengthen their careers. The Institute of Certified Professional Managers has a certification program that is earned from completing the related training and passing an exam. Attendees receive the Certified Manager (CM) credential that is available for managers at all levels, including senior executives and those who want to pursue a management career. While certification is not necessary to advance in most industries, it does provide a way to develop valuable management skills.
General managers usually advance to a top executive position within an organization, or accept an executive positions at a different organization. Some chief executive officers join the board of directors at one or more firms, and might chair the board of directors. It is not unusual for chief executives to become independent consultants, or to start their own company after several years in the top position of an organization.
Job Outlook
The job outlook projection for chief executives expects little or no change in employment. Competition will remain stiff because the prestige and high salary will attract a lot of applicants.
Little to no change is expected for chief executives and general and operations managers through 2018. Employment is expected to vary based on the industry since these occupations are very essential to running organizations. The employment of chief executives will reflect either the growth or decline of an industry. For example, the health services industry will experience a robust job growth, while many manufacturing industries will experience a steady decline.
Another factor that will affect employment of chief executives is the number of consolidations and mergers within some industries, which tend to loose top management positions once a merger is complete. Additionally, growth in a business does not increase the number of chief executives the same as line employees. This is a direct impact on the less than average growth for chief executive positions.
Job prospects
Competition will increase for chief executives because of the prestige and high pay that tends to attract many qualified applicants. Numerous positions will occur each year because of transfers and executives who leave the company for other reasons such as retirement or to start their own company. However, the pattern of chief executives who leave one high level job to go to another is what places limitations on new entrants into the occupation.
The best opportunities are for experienced executives who can demonstrate a list of accomplishments which reflect strong leadership qualities needed to lead an organization. Additionally, the ability to improve efficiencies and competitiveness in an organization will prove to be in the executive’s favor. Experience in marketing, information systems, and international economics as the economy aggressively moves towards globalization are also beneficial.
Projections
According to the National Employment Matrix, employment for chief executives will experience a steady decline by 2018, with a -7,800 loss.
Earnings
Chief executives are some of the highest paid workers in the U.S, although salary levels vary depending on the amount of executive responsibility; type, size and location of an organization; and, length of service with the organization.
In May 2008, the median wages for general and operations managers was $91,570 per year. The middle 50 percent of general and operations managers earned between $62,900 and $137,020 per year. Median wages within certain industries varied because of the level of specific responsibilities relative to those industries. For the industries employing the largest number of general and operations managers, the median annual wages were:
- Computer systems and related services - $133,140
- Scientific and technical management consulting services - $130,390
- Companies and enterprises - $113,690
- Contractors of building equipment - $91,370
- Local government agencies - $82,150
For chief executives, the median annual salary in May 2008 was $158,560, while some chief executives in large corporations earned up to $1 million annually. Executives in government agencies earned much less.
Often, the total compensation package for chief executives includes stock options and other bonuses tied to the company’s performance. Private industry chief executives also enjoy company owned aircraft and vehicles, expense allowances and company paid insurance premiums. Some chief executive officers receive company paid club memberships. Chief executives in government agencies and nonprofits typically have fewer benefits.
Wages
Wages for top executives varies based on the industry and job responsibilities. As of May 2009, the annual mean wage for chief executive positions based on industry was as follows:
- Management of companies and enterprises - $197,230
- Securities and commodity exchanges - $217,930
- Natural gas distribution - $215,250
- Scientific research and development services - $214,770
Related Occupations
- President, Chief Financial Officer (CFO), Chief Operation Officer (COO)
- Executive Director
- Executive Vice President (EVP)
- General Manager
- Financial Manager
- Computer and Information Systems Manager
Sources of Additional Information
- Bureau of Labor Statistics
- U.S. Department of Labor
- Occupational Outlook Handbook, 2010-11 Edition
- O*NET Online
Related Jobs
People with the educational background, skills, and desire to become a Chief executives might be well suited to work as Administrative services managers as well.
