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Executive management positions include CEO, president, vice president, CFO, CIO, and chairman of the board. They serve as leaders and decision makers, with the CEO having the most responsibility and influence. The president oversees day-to-day operations, while the CFO manages financial health and the CIO handles investments. The chairman of the board acts as a fiduciary for investors.
There are several types of executive management positions, usually sufficient to cover all the tasks, duties and obligations of running a business. Most companies are headed by a chief executive officer (CEO), who can also serve as president of the company. This person usually has the most responsibility and influence when it comes to making decisions and responsibilities. Just below this person is typically a vice president or, depending on the structure, a team of vice presidents; these individuals are typically assigned to lead specific divisions and offer support to the CEO. Also of great importance are the Chief Financial Officer (CFO) and, in many contexts, the Chief Investment Officer (CIO), both of whom deal with accounting and finance matters. In public companies, the Chairman of the Board of Directors usually also holds an executive position. Depending on the size of the company and its scope, some people may have more than one role, and not all positions are in every company.
Understanding of executive management in general
Employees who work in executive management serve as the leaders and decision makers of a company. Within the corporate hierarchy, executive management jobs are at the top. Their respective responsibilities can be grouped according to a set of defined roles, departments and job descriptions.
Together, executive leaders typically function as the decision-making core of a company. These people are usually the most profitable employees and also bear the greatest responsibility for the success or failure of the business. Executive management jobs are often performance-based, and as a result, base salaries are complemented by a variable bonus that depends on the employee’s contribution to the company’s success.
CEO
The head of a company is the CEO. The chief executive officer ranks above all other executive management posts, including the president, and has the greatest responsibility. He or she has final say in every decision and is ultimately responsible for making overall strategy, resource, marketing and expansion decisions. In addition, the chief executive officer typically also serves as the company’s primary spokesperson, particularly with regards to the board, trustees, and shareholders.
Presidential duties
The president of a company is often, but need not be, the CEO. The president’s responsibilities are more day-to-day and tactical than the CEO’s. While the president is tasked with overseeing day-to-day operations and more systematic decisions, the CEO is often viewed on a more strategic and visionary basis. It should be noted that there is only one president for the entire corporation, but a corporation with multiple divisions will likely have corresponding presidents presiding over each division.
vice president
Similar to the president, the vice president is also responsible for day-to-day tactical decisions. The duties of a vice president, however, are generally more collaborative and slightly less definitive in terms of overall authority. Very large companies often have vice presidents for each major division; one might be for sale while another is in business, for example. Sometimes there are also executive vice presidents, who typically have even more power and control and do more in terms of matching with the larger executive group.
Financial leadership
The role of the chief financial officer (CFO) is to oversee the financial health of the company. This includes establishing, reviewing, and signing off on the validity of the company’s financial statements, which are scrutinized by investors and regulatory agencies. As more scrutiny is focused on executive compensation, financial health, and full financial disclosure, the accountability of the CFO is often very important.
Investment management
Responsible for managing the firm’s overall investments, the Chief Investment Officer (CIO) helps devise and employ short- and long-term investment strategies. This may include overseeing equity and bond divisions, overseas and emerging markets, and other sectors within the financial realm. The CIO may also perform other functions within the company.
Prime Minister
Finally, there is the chairman of the board of directors. The laws of most countries require any public company to have a board of directors. The role of the board of directors is to act as a fiduciary for investors and promote the interest of shareholders, such as monitoring executive compensation, dividend amounts and distributions, and other related activities. The chairman of the board is typically elected to the position and serves as the primary liaison between the shareholders and the executives.
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