Career profile for Chief Executive

What does a Chief Executive do?

Chief Executives determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body.

In addition, Chief Executives plan, direct, or coordinate operational activities at the highest level of management with the help of subordinate executives and staff managers.

What kind of tasks does a Chief Executive perform regularly?

Chief Executives are often responsible for overseeing or executing some or all of the following tasks:

Direct or coordinate an organization's financial or budget activities to fund operations, maximize investments, or increase efficiency.
Appoint department heads or managers and assign or delegate responsibilities to them.
Analyze operations to evaluate performance of a company or its staff in meeting objectives or to determine areas of potential cost reduction, program improvement, or policy change.
Direct, plan, or implement policies, objectives, or activities of organizations or businesses to ensure continuing operations, to maximize returns on investments, or to increase productivity.
Prepare budgets for approval, including those for funding or implementation of programs.
Confer with board members, organization officials, or staff members to discuss issues, coordinate activities, or resolve problems.
Implement corrective action plans to solve organizational or departmental problems.
Direct human resources activities, including the approval of human resource plans or activities, the selection of directors or other high-level staff, or establishment or organization of major departments.
Establish departmental responsibilities and coordinate functions among departments and sites.
Preside over, or serve on, boards of directors, management committees, or other governing boards.
Negotiate or approve contracts or agreements with suppliers, distributors, federal or state agencies, or other organizational entities.
Coordinate the development or implementation of budgetary control systems, recordkeeping systems, or other administrative control processes.
Review reports submitted by staff members to recommend approval or to suggest changes.
Deliver speeches, write articles, or present information at meetings or conventions to promote services, exchange ideas, or accomplish objectives.
Interpret and explain policies, rules, regulations, or laws to organizations, government or corporate officials, or individuals.
Prepare or present reports concerning activities, expenses, budgets, government statutes or rulings, or other items affecting businesses or program services.
Review and analyze legislation, laws, or public policy and recommend changes to promote or support interests of the general population or special groups.
Administer programs for selection of sites, construction of buildings, or provision of equipment or supplies.
Direct or conduct studies or research on issues affecting areas of responsibility.

The above responsibilities are specific to Chief Executives. More generally, Chief Executives are involved in several broader types of activities:

Activities	Importance	Details
Making Decisions and Solving Problems		Analyzing information and evaluating results to choose the best solution and solve problems.
Getting Information		Observing, receiving, and otherwise obtaining information from all relevant sources.
Communicating with Supervisors, Peers, or Subordinates		Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.
Communicating with People Outside the Organization		Communicating with people outside the organization, representing the organization to customers, the public, government, and other external sources. This information can be exchanged in person, in writing, or by telephone or e-mail.
Developing and Building Teams		Encouraging and building mutual trust, respect, and cooperation among team members.

Making Decisions and Solving Problems

Analyzing information and evaluating results to choose the best solution and solve problems.

Getting Information

Observing, receiving, and otherwise obtaining information from all relevant sources.

Communicating with Supervisors, Peers, or Subordinates

Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.

Communicating with People Outside the Organization

Communicating with people outside the organization, representing the organization to customers, the public, government, and other external sources. This information can be exchanged in person, in writing, or by telephone or e-mail.

Developing and Building Teams

Encouraging and building mutual trust, respect, and cooperation among team members.

What is a Chief Executive salary?

The median salary for a Chief Executive is $185,950, and the average salary is $197,840. Both the median and average roughly describe the middle of the Chief Executive salary range, but the average is more easily affected by extremely high or low salaries.

Many Chief Executives earn significantly more or less than the average, due to several factors. About 10% of Chief Executives earn less than $62,780 per year, 25% earn less than $114,530, 75% earn more than $208,000, and 90% earn more than $208,000.

Between the years of 2020 and 2030, the number of Chief Executives is expected to change by -5.7%, and there should be roughly 17,500 open positions for Chief Executives every year.

Median annual salary: $185,950
Typical salary range: $62,780 - Over $208,000
Projected growth (2020 - 2030): -5.7%

What personality traits are common among Chief Executives?

Interests

Career interests describe a person's preferences for different types of working environments and activities. When a person's interest match the demands of an occupation, people are usually more engaged and satisfied in that role.

Compared to most occupations, those who work as a Chief Executive are usually higher in their Enterprising and Conventional interests.

Chief Executives typically have very strong Enterprising interests. Enterprising occupations frequently involve starting up and carrying out projects. These occupations can involve leading people and making many decisions. Sometimes they require risk taking and often deal with business.

Also, Chief Executives typically have strong Conventional interests. Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.

Values

People differ in their values, or what is most important to them for building job satisfaction and fulfillment.

Compared to most people, those working as a Chief Executive tend to value Recognition, Independence, and Achievement.

Most importantly, Chief Executives very strongly value Recognition. Occupations that satisfy this work value offer advancement, potential for leadership, and are often considered prestigious.

Second, Chief Executives very strongly value Independence. Occupations that satisfy this work value allow employees to work on their own and make decisions.

Lastly, Chief Executives very strongly value Achievement. Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment.

Psychological Demands

Each occupation brings its own set of psychological demands, which describe the characteristics necessary to perform the job well.

In order to perform their job successfully, people who work as Chief Executives must consistently demonstrate qualities such as leadership, integrity, and initiative.

Below, you'll find a list of qualities typically required of Chief Executives, ranked by importance:

Demands	Importance	Details
Leadership		Job requires a willingness to lead, take charge, and offer opinions and direction.
Integrity		Job requires being honest and ethical.
Initiative		Job requires a willingness to take on responsibilities and challenges.
Stress Tolerance		Job requires accepting criticism and dealing calmly and effectively with high-stress situations.
Dependability		Job requires being reliable, responsible, and dependable, and fulfilling obligations.

Leadership

Job requires a willingness to lead, take charge, and offer opinions and direction.

Integrity

Job requires being honest and ethical.

Initiative

Job requires a willingness to take on responsibilities and challenges.

Stress Tolerance

Job requires accepting criticism and dealing calmly and effectively with high-stress situations.

Dependability

Job requires being reliable, responsible, and dependable, and fulfilling obligations.

What education and training do Chief Executives need?

Many Chief Executives have earned a graduate degree. For example, they may require a master's degree, and some require a doctoral degree, such as a Ph.D., M.D., or J.D..

Chief Executives may need some on-the-job training, but most candidates will already have the required skills, knowledge, work-related experience, and/or training.

Educational degrees among Chief Executives

1.5% did not complete high school or secondary school
8.3% completed high school or secondary school
14.2% completed some college coursework
5.1% earned a Associate's degree
40.5% earned a Bachelor's degree
23.7% earned a Master's degree
6.7% earned a doctorate or professional degree

Knowledge and expertise required by Chief Executives

Chief Executives may benefit from understanding of specialized subject areas, such as administration and management, personnel and human resources, or customer and personal service knowledge.

The list below shows several areas in which most Chief Executives might want to build proficiency, ranked by importance.

Knowledge areas	Importance	Details
Administration and Management		Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.
Personnel and Human Resources		Knowledge of principles and procedures for personnel recruitment, selection, training, compensation and benefits, labor relations and negotiation, and personnel information systems.
Customer and Personal Service		Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
Law and Government		Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.
Economics and Accounting		Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.

Administration and Management

Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.

Personnel and Human Resources

Knowledge of principles and procedures for personnel recruitment, selection, training, compensation and benefits, labor relations and negotiation, and personnel information systems.

Customer and Personal Service

Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.

Law and Government

Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.

Economics and Accounting

Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.

Important Abilities needed by Chief Executives

Chief Executives must develop a particular set of abilities to perform their job well. Abilities are individual capacities that influence a person's information processing, sensory perception, motor coordination, and physical strength or endurance. Individuals may naturally have certain abilities without explicit training, but most abilities can be sharpened somewhat through practice.

For example, Chief Executives need abilities such as oral comprehension, oral expression, and written comprehension in order to perform their job at a high level. The list below shows several important abilities for Chief Executives, ranked by their relative importance.

Abilities	Importance	Details
Oral Comprehension		The ability to listen to and understand information and ideas presented through spoken words and sentences.
Oral Expression		The ability to communicate information and ideas in speaking so others will understand.
Written Comprehension		The ability to read and understand information and ideas presented in writing.
Written Expression		The ability to communicate information and ideas in writing so others will understand.
Deductive Reasoning		The ability to apply general rules to specific problems to produce answers that make sense.

Oral Comprehension

The ability to listen to and understand information and ideas presented through spoken words and sentences.

Oral Expression

The ability to communicate information and ideas in speaking so others will understand.

Written Comprehension

The ability to read and understand information and ideas presented in writing.

Written Expression

The ability to communicate information and ideas in writing so others will understand.

Deductive Reasoning

The ability to apply general rules to specific problems to produce answers that make sense.

Critical Skills needed by Chief Executives

Skills are developed capacities that enable people to function effectively in real-world settings. Unlike abilities, skills are typically easier to build through practice and experience. Skills influence effectiveness in areas such as learning, working with others, design, troubleshooting, and more.

Chief Executives frequently use skills like judgment and decision making, speaking, and critical thinking to perform their job effectively. The list below shows several critical skills for Chief Executives, ranked by their relative importance.

Skills	Importance	Details
Judgment and Decision Making		Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Speaking		Talking to others to convey information effectively.
Critical Thinking		Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Complex Problem Solving		Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.
Social Perceptiveness		Being aware of others' reactions and understanding why they react as they do.

Judgment and Decision Making

Considering the relative costs and benefits of potential actions to choose the most appropriate one.

Speaking

Talking to others to convey information effectively.

Critical Thinking

Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.

Complex Problem Solving

Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.

Social Perceptiveness

Being aware of others' reactions and understanding why they react as they do.

What is the source of this information?

The information provided on this page is adapted from data and descriptions published by the U.S. Department of Labor, Employment and Training Administration under the CC BY 4.0 license. TraitLab has modified some information for ease of use and reading, and the U.S. Department of Labor, Employment, and Training Administration has not approved, endorsed, or tested these modifications.

If you have any questions or suggestions about this information, please send a message.

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