CEO: what it is, what it means and what a CEO does in a company
Who runs the company, what they decide every day and how the role differs from a chairman or a general manager
CEO stands for Chief Executive Officer, the highest management position in a company. In Spanish it is translated as director ejecutivo, director general or consejero delegado, depending on the type of company.
The CEO decides where the business is heading, builds the management team and is accountable to the partners or the board of directors for the results.
What does CEO mean?
CEO is an English acronym. Each letter stands for a word:
| Letter | Word | Meaning |
|---|---|---|
| C | Chief | Head or top person in charge |
| E | Executive | Executive, the person who directs and makes decisions |
| O | Officer | Senior manager or company position |
It is pronounced letter by letter: “see-ee-oh” in English or “ce-e-o” in Spanish. In Spanish the plural stays the same (“los CEO”), although “los CEOs” is also used.
In Spain, the closest legal role is the consejero delegado: a member of the board of directors to whom management powers are delegated. In Latin America, director general or director ejecutivo is more common.
What does a CEO do?
The role changes with the size of the company, but these are the main responsibilities:
Defines the strategy. Sets the goals, decides which markets to compete in and approves the major projects. It builds on the company’s mission, vision and values.
Builds the management team. Chooses and coordinates the heads of each area: finance, marketing, operations or technology.
Manages resources. Decides how the budget is allocated and what to invest in.
Is accountable. Reports results to the board of directors and the shareholders, using indicators such as KPIs.
Represents the company. Is the public face to customers, investors, the media and other stakeholders.
Looks after the culture. Sets the working style and the tone the company uses with its team and its customers.
What is the difference between a CEO, a general manager and a chairman?
These roles are often confused. In many companies, the same person holds them:
| Job title | What it does | Reports to |
|---|---|---|
| CEO | Runs the company day to day and executes the strategy | The board of directors |
| Consejero delegado | A board member with delegated management powers; in Spain, the closest equivalent to a CEO | The board of directors |
| General manager | Runs operations; may be an employee without a seat on the board | The CEO or the board, depending on the company |
| Chairman | Chairs the board of directors and represents the shareholders | The shareholders’ meeting |
In a small business or a startup, the founder is usually both chairman and CEO. In large listed companies, the two roles are usually separate.
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Other C-level positions
The CEO heads the so-called C-level or C-suite: the executives whose title starts with Chief. These are the most common:
| Acronym | Full title | Also known as | Area |
|---|---|---|---|
| CEO | Chief Executive Officer | Chief executive | The whole company |
| CFO | Chief Financial Officer | Finance director | Finance |
| CMO | Chief Marketing Officer | Marketing director | Marketing |
| COO | Chief Operating Officer | Operations director | Operations |
| CTO | Chief Technology Officer | Technology director | Technology and product |
| CIO | Chief Information Officer | IT director | Information systems |
| CHRO | Chief Human Resources Officer | Head of people | Human resources |
They all report to the chief executive, who coordinates their work so that every area pulls in the same direction.
The CEO and customer communication
The person who runs the company doesn’t only work internally. More and more companies use their CEO’s voice to talk to customers, especially by email.
The founder’s welcome email. A welcome email signed by the founder when someone signs up builds a closer relationship, especially in startups and small businesses.
Important announcements. A price change, a new product or an incident is easier to understand when the person running the company explains it.
The annual letter. Many companies send a yearly summary of their achievements and plans, signed by management.
For these messages to reach the inbox, it’s best to send them from an email marketing platform with a recognizable sender, not from a personal email account.
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Frequently Asked Questions
These are the most common questions about this role.
What does CEO mean in Spanish?
It means director ejecutivo (chief executive). It stands for Chief Executive Officer. In Spain, consejero delegado or director general are also used.
What is the CEO of a company?
The person who holds the highest management position. They decide the strategy, lead the management team and answer for the results.
Is the CEO the owner of the company?
Not always. In many small businesses the founder is both owner and CEO, but in large companies the CEO is usually an executive hired by the board.
Is a CEO the same as a chairman?
No. The chairman leads the board of directors, and the CEO runs the company’s management. Sometimes the same person holds both roles.
What is the plural of CEO?
In Spanish, the recommended form is to leave it unchanged: “los CEO”. “Los CEOs” is also common.