Chief executive officer

A chief executive officer (CEO), chief administrator officer (CAO), central executive officer (CEO), or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization – especially an independent legal entity such as a company or nonprofit institution. CEOs find roles in a range of organizations, including public and private corporations, non-profit organizations and even some government organizations (notably state-owned enterprises). The CEO of a corporation or company typically reports to the board of directors and is charged with maximizing the value of the business, which may include maximizing the share price, market share, revenues or another element. In the non-profit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission, usually provided by legislation. CEO's are also frequently assigned the role of main manager of the organization and the highest ranking officer in the C-suite.

Qualifications

Most CEOs have experience working in upper management in the same or similar industry. Other skills and qualifications include:

• Good communication skills
• Problem-solving skills
• Leadership skills
• Time management skills
• Decision-making skills
• Prioritization and delegation skills

Requirements

• Experience in a senior management position.
• Knowledge of profit and loss, balance sheet and cash flow management, and general finance and budgeting.
• Ability to build consensus and relationships among executives, partners, and the workforce.
• Understanding of human resources and personnel management.
• Experience with corporate governance.
• Proven negotiation skills.
• Ability to understand new issues quickly and make wise decisions.
• Ability to inspire confidence and create trust.
• Ability to work under pressure, plan personal workload effectively, and delegate.

Appointment

1. The notice for calling a general meeting will be prepared; it consists of the resolution details, the terms and conditions of the appointment, and the candidate’s qualifying conditions as Chief Executive Officer.
2. The notice will be sent to the Board of Director and other significant shareholders; the Board consists of independent and non-independent directors, audit committee director, supervisory board members to pass an impartial selection
3. The meeting agenda will be intimated with relevant details and considerations
4. The Board meeting will be convened on the fixed date; there, the board members debate and deliberate on the appointment and cast support for the Chief executive officer’s appointment. The chairman of the Board provides a detailed explanation on the selection, including reasons for choosing the relevant candidate
5. After making deliberations, the Board unanimously pass the resolution for the appointment of the Chief executive officer and fix other terms and conditions
6. Concerning the listed corporations, the minutes of the meeting will be recorded, and discussions and the decisions will be sent to the stock exchange within 30 minutes from the conclusion of the meeting
7. The letter of appointment will be issued to the candidate chosen for the position of Chief Executive Officer.
8. The e-Form MGT-14, MR-1, and DIR-12, along with other required attachments (as the memorandum suggests), will be filed with the Registrar of Companies.
9. The relevant forms regarding the appointment of the Chief Executive Officer should be filed within thirty (30) days from the resolution and appointment as Chief Executive Officer
10. The appointment letter will be sent to the company management to enter the company register and minutes book.
11. Contravening the provision, the company will be held liable with a fine not less than Rs. 1,00,000 extending up to 5,00,000.

Duties

The CEO of a company has many hats to wear, depending on the size and nature of the business. In smaller companies, they take more hands-on roles such as making decisions about lower-level staff hires or firings, while in larger corporations they only deal with high-level corporate strategy and strategic positioning.

Responsibilities

The responsibilities of an organization's CEO are set by the organization's board of directors or other authority, depending on the organization's structure. They can be far-reaching or quite limited and are typically enshrined in a formal delegation of authority regarding business administration. Typically, responsibilities include being an active decision-maker on business strategy and other key policy issues, leader, manager, and executor. The communicator role can involve speaking to the press and the rest of the outside world, as well as to the organization's management and employees; the decision-making role involves high-level decisions about policy and strategy. The CEO is tasked with implementing the goals, targets and strategic objectives as determined by the board of directors. As an executive officer of the company, the CEO reports the status of the business to the board of directors, motivates employees, and drives change within the organization. As a manager, the CEO presides over the organization's day-to-day operations. The CEO is the person who is ultimately accountable for a company's business decisions, including those in operations, marketing, business development, finance, human resources, etc.
The use of the CEO title is not necessarily limited to describing the owner or the head of a company. For example, the CEO of a political party is often entrusted with fundraising, particularly for election campaigns.

Benefits

One of the key advantages of a CEO job is autonomy, explains career coach Debra Benton. While the board of directors can tell you what to do, it usually doesn’t tell you how to do it. You work with your board to come up with long-term strategies for the company, but you decide on the tactics. As a CEO, you won’t be frustrated that you’re being handcuffed by your boss. Another main advantage of being a CEO is the compensation, explains ValiantCEO. The CEO is usually the highest-paid employee at a company. In addition to a base salary, you can earn a bonus, receive stock options and get perks such as a company car, country club membership, free or subsidized housing and other benefits.
One benefit that helps CEOs advance their careers is the publicity they get or the stature they earn as a CEO. This leads to more job offers and better compensation. Because a CEO is a generalist who focuses on financial performance, she can oversee a car company, restaurant chain or tennis racquet company.

Grounds for Removal/Dismissal

The Company has established “Underperformance” and “Applicable factors that make a CEO unsuitable to assume the highest-ranking management position” as dismissal standards for CEO.

1. (Underperformance) The Group remains unprofitable for three consecutive years in terms of consolidated operating income.
2. (Applicable factors that make a CEO unsuitable to assume the highest-ranking management position.)

• If the CEO’s health conditions are too poor to discharge his/her duties as a CEO.
• If any matter that applies mutatis mutandis as the reason for the disqualification of Directors specified in Article 331 of the Companies Act.
• If the Company’s credibility is considered to be damaged and the smooth operation of businesses is affected due to the CEO’s behaviour or words, findings of any misconduct/occurrence of losses and damages for which the CEO should be responsible, or other factors.

• Deliberations and necessary surveys pertaining to the applicability or non-applicability of factors in the abovementioned 3. (2) shall be made at the Independent Officer Committee comprising all Independent Outside Directors and Independent Audit & Supervisory Board Members of the Company. If the dismissal of CEO is decided to be appropriate at the Independent Officer Committee, the chairperson (chief Independent Outside Director) shall submit a proposal for the dismissal of CEO to the Board of Directors.
• If the requirement in the abovementioned 3. (1) or any fact considered to be reason for dismissal without the need for deliberation by the Independent Officer Committee is identified, the Board of Directors shall resolve to dismiss the CEO unconditionally.

Type

Civic, Professional

Form of Address

CEO

Current Holders

• Bucksly Thompson

Related Organizations

• $hurnace Incorporated