chief executive officer

business

Also known as: CEO

Written byBrian Duignan

Fact-checked byThe Editors of Encyclopaedia Britannica

Updated: Nov. 11, 2026

Mary Barra, shown in 2012, became CEO of General Motors in 2014 and has the distinction of being the first female chief executive in the automotive industry.

Bill Pugliano—Getty Images/Thinkstock

Also Known As:: CEO

News

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Nvidia taps former federal prosecutor to probe CEO’s affair • Nov. 11, 2026, 01:33 AM (ET)(Washington Post)

The chief executive officer (CEO) is the senior manager or leader of a business or other organization, such as a nonprofit or nongovernmental organization (NGO). A CEO has final decision-making authority within the organization (subject to the general consent of a board of directors, if there is one) and holds a number of important responsibilities, including:

Articulating the mission or purpose of the business or organization
Determining its managerial and reporting structure
Setting its short- and long-term goals; devising and implementing strategies for achieving them
Managing its operations and resources at a high level
Establishing a culture that fosters employee engagement, adaptability, accountability, and learning (or skill building)
Reviewing the performance of lower-level executives and their units or teams
Representing the business or organization in public forums and industry-related gatherings
Assessing and reporting (to shareholders, stakeholders, boards of directors, or owners) on its operations at regular intervals
Ensuring its overall success—which, in the case of businesses, is normally assessed in terms of potential increases in net income, market share, shareholder returns, and brand recognition

In the case of larger businesses and some other larger organizations, the CEO is hired or internally promoted by a board of directors, which may subsequently dismiss the CEO if it is dissatisfied with the person’s performance.

The large and small of it all

Business come in all sizes, from sole proprietorships to partnerships to corporations with thousands of employees. Each structure offers advantages and disadvantages. Learn about the types of businesses, how they are formed, and what you need to know to start your own business.

The specific duties and responsibilities of CEOs tend to vary with the size, structure, and culture of the organization and the nature of the industry or environment in which it operates. For example, the CEO of a small company is typically more directly involved in day-to-day operations and lower-level decision-making than the CEO of a large company.

This article was most recently revised and updated by Brian Duignan