You must have heard of the very common term CEO, used in t.v. reports, talk shows, business news. Chief executive officer or popularly known as CEO , is the top authority in any business organisation. It must have intrigued you as to how a person becomes a CEO. Well, in this post we would be telling you as to how you can become CEO or for that very purpose how anyone is this world becomes company CEO.
Who is a CEO?
Well before answering, ‘How to become ceo of a company?’, it is important to know who is actually a ceo and what functions does he performs.
A Chief Executive Officer (CEO), is the highest position in any company and is one who is responsible for managing and controlling the entire functioning of a company. He is the one who takes all major corporate decisions related to the company and is also the face of the company.
A CEO is selected by the shareholders and the board of directors of the company. You must have heard of Tim cook, Satya Nadela, Sundar Pichai, these are all CEOs of their respective companies- Apple, Microsoft and Alphabet.
Functions of CEO
A CEO has to perform a plethora of activities ranging from taking hard decisions, Planning new products, overseeing the overall functioning of the company and communicating with the Board of Directors and shareholders. Some of the major functions of ceo are:
- Strategic Planning: The foremost function of any ceo is to strategically plan a perfect course of action for his or her company. This includes planning about the sales and marketing strategies, expanding the market capitalization and customer reach of the product and overseeing the implementation of the plans.
- Evaluating the performance of others: CEO also has the responsibility of evaluating the performance of the company as well as other employees of the organisation.
- Face of the company: He is also the face of the company. To increase the goodwill of the company he may have to attend several charity events, work on the projection of company in the social domain, respond to the media about the company’s vision and a lot more.
- Social Responsibility: CEO has to also ensure that the company fulfills all the corporate social responsibilities and creates value for the customers and society.
- Analyzing the competition: In today’s fast changing world, it is a necessity to be conscious and aware about the competition in the market. A CEO also analyzes the competitors and devise plans to move ahead them.
- Risk Management: They have to assess risks to the company and ensure they are monitored and minimized
How to become the CEO of a company
Well, there are multiple ways of becoming the CEO of a company. The most common one is that you start working in a company at the best position available to you at the time. Then, with time, prove your mettle, perseverance, determination and most extremely your loyalty towards the company. You have to make the impossible possible by working day in day out for the company and generating great profits. Also, your contribution towards the company should be much greater than that of any of your peers. And then, if you are lucky enough, you would be one day sitting on that CEO chair which everyone wishes for.
I repeat, if luck is with you then only, Well, this sounds quite suppressing, after working so much, you might end up in not achieving what you wanted. But that’s the truth!!
No worry though, we are here to tell you some other ways in which you can become the ceo of a company and even that in a short time. Let’s look at some other ways of becoming a ceo…
How to become a CEO without a degree
It’s sounds almost impossible to become a ceo without a degree in the present times. And why not? Most of the CEO’s today are highly educated people, for instance, Mark Zuckerberg, the CEO of Facebook, is a Harvard graduate.
Another great example is that of Sundar Pichai, the CEO of Alphabet and Google. He has been a student at IIT Kharagpur and then later at MIT. However, you must know that there is no such compulsion or criteria as to become a ceo.
So how can you become CEO without such qualifications? The best answer is Start-up. Yes, the easiest way to become the CEO of a company is to begin a start-up of your own. For this you don’t need any degree or qualification. What you need is just an idea, a team and funds to execute your plans. Most of the people that become CEO are the ones who started their own company. This is because when you begin your own startup, you are the owner of it and you can be anything you want. However, it might not be that easy to come up with a start-up.
It’s mainly upto you, how well of a plan and idea you can think of. Else you may partner in someone else’s startup and even then end up in being on the position of CEO. You may read our post on ‘How to become an Entrepreneur – The A to Z guide‘ to get started with your entrepreneurial journey.
How to become CEO in 5 years
Another interesting question which people often have in their minds is, ‘How to become CEO in 5 years or even lesser?’.
Well, while its extremely tough to be in that leading position within 5 years it’s not entirely impossible. It all depends at what position you start.
If you are well-experienced and are in one of those top level positions, it would be comparatively easy for you to capture that dream position of CEO. However, if you are currently working at the supervisory or operational level, than my friend, I would be extremely sorry to tell you that you have a long way ahead. Don’t expect a magic to happen. You won’t be there easily (unless you use some of the tips and tricks that I suggetsed).
Consider for example, you are currently the COO of a company called XYZ Ltd. Now, your chances of being the CEO is much more than a factory manager and you might even become the ceo the next year itself.
However, you can also become the ceo of a company in no time. How? The answer lies in the above segment where I talked about ‘How to become a CEO without degree?’. Yes, you can start your own company and become the ceo.
Now, in today’s digitized world it’s a cake walk to start your own company. You may become a social media influencer and start your personal brand or you may become a youtuber with your own line of merchandise or even greater, you may start your own blog, just like me and be the ceo.
Salary of CEO
The salary of a ceo varies greatly across industries, countries, domains, companies and even on their personal will. However, the common link is that all the CEO’s are paid hefty.
The salary is well enough to do all you want to do – eating at the finest restaurants, wearing the best of clothes, driving the fastest cars, living in the biggest Bungalows, the best vacations or even a world tour and even after that you would be left with a lot in your bank account.
The basic salary of even the ceo of a small company ranges between $200,000 to $300,000. And this amount would scale up as you increase the size of the organisation. To give you a glimpse of how much a CEO earns, let me give you the earnings of the top most CEO’s of the world.
The salary of ceo of apple, Tim Cook was around $10.7 million in 2020 itself. This includes a base salary amounting to $3 million itself and the incentives of a staggering amount of $7.7 million. Another example is that of Goodwill. The ceo salary of Goodwill is around $2.3 million which is a hefty amount. Also, to talk of a few others, the CEO salary of salvation army amounts around $250,000 which is enough for anyone.
So, it can be inferred that the average salary of any ceo would be $200,000 to $300,000. This could vary across industries such as the ceo salary of hospital is generally on the higher side, considering the stress the job imposes while the ceo salary of most Non-Profit organisations on the lower side.
The post of CEO is both a highly demanded as well as highly desired. However, it might not be that easy to become CEO. There are numerous ways of becoming CEO. One must consider his position first and then pick the way most suitable to him. But remember not everyone becomes a CEO, but certainly if you put in efforts you would in a much better position than now.