Chief Executive Officer (CEO): definition, missions, skills (2024)

Tomorrow, we may no longer speak of CEOs or Directors, but only of “CEOs”. More than just a fashion phenomenon, this anglicism has almost become a norm in the business world. In this job description, we will look at the realities behind this semantic shift and explain the role and tasks of a CEO.

What is a CEO?

If we were to rely solely on Google Translation, we would have to consider that “Chief Executive Officer” in English means “Chef de la Direction” in French. But in fact, the acronym “CEO” refers to what we are used to calling in France the “Président-Directeur-Général” (CEO) or the “Président” of a company. Sometimes we use this expression to refer to the position of Chief Executive Officer of a subsidiary of a multinational company. In other words, the CEO is the person who holds the highest position in the top management team of an organisation.

The role and tasks of the CEO

The main objective of a CEO is obviously to ensure the sustainability, profitability and development of the company he or she works for. It is largely on his shoulders that the responsibility for setting and giving the company's major strategic directions rests. He is in direct contact with the main directors (particularly the financial director, the marketing director and the human resources director). The CEO also ensures the operational implementation of the strategy that has been decided. Sometimes, he is supported by a Deputy CEO, i.e. an Assistant Director or Vice President. Finally, when appointed by a board of directors, the CEO is accountable to the board.

Beware, however, that behind the name CEO there are very different realities. Being the CEO of a start-up or an SME and being appointed CEO of an ETI or a large group, you can imagine that it is not exactly the same job. Let's say that the CEO of a small company, generally the founder, is much more involved in day-to-day operational management, whereas the missions of the CEO of a large company are more strategic.

Grande Ecole programme

What are the differences between a CEO, a DG and a PDG?

Traditionally in France, but also in other European countries, the executive committee - or the management committee - is separate from the board of directors, on which the shareholders are represented. These two boards are chaired by two distinct personalities: on the one hand the CEO, who is a sort of executive director, and on the other the Chairman, who reports to the shareholders. In the Anglo-Saxon world, the CEO plays both roles.

In a context of globalisation, the title of CEO seems more modern, but behind this semantic shift, there is a real standardisation of corporate governance based on the Anglo-Saxon model. Whereas yesterday the company director seemed to be linked to the history of the company and to act in the long term, today the CEO seems to be busy meeting the profitability objectives set by the shareholders in the short term, he is on a "commando mission".

Master in Business Management

The qualities and skills of the CEO

The CEO must necessarily have technical skills in finance, accounting, marketing and human resources management. They must know their competitive environment inside out and be able to anticipate market developments on a national or international scale.

In terms of soft skills, the CEO must have a very good sense of leadership and interpersonal communication in order to manage his or her teams internally, to lead each member of the executive committee in the right direction or to convince the members of the board of directors that he or she has taken the right decisions.

What studies and qualifications are required to become a CEO?

There is no CEO diploma as such, but the position of company director is often given to graduates of top business or engineering schools. Unless you start your own company and then proclaim yourself CEO, it will take some time before you are appointed as a company director or managing director. A Master's degree - such as a Grande Ecole programme or a Master in Business Management - will help you get into senior positions early in your career, and then into management positions before you can claim the Grail.

What is the salary of a CEO?

The salary depends very much on the size of the company and its results. Some specialist sites indicate a median salary of around 75k per year. The most important thing to remember is that a CEO's overall remuneration is made up of a fixed salary and a significant variable component. Profit-sharing can therefore increase the annual base salary.