Read How to Become a Chief Executive Officer

How to Become a Chief Executive

The Basics of Becoming a Chief Executive Officer

Do you aspire to become a Chief Executive or business leader? Chief Executives provide direction to a company or organization. They work with a board of directors to establish goals and procedures for the company. They analyze a company’s performance, prepare financial budgets, and delegate responsibilities to department heads and managers. Chief Executives also approve contracts and agreements and identify places to improve performance and cut costs. They meet with other executives and staff members to discuss an organization’s general operations.

According to the Bureau of Labor Statistics, Chief Executives can have varying levels of education and experience, but in general, they have a bachelor’s degree in business administration or public administration. Some also have a master’s in business administration (MBA).

What is the Most Important Ability to Become a Chief Executive Officer?

A lack of emotional intelligence is the biggest derailer of aspiring CEOs.Click To Tweet!
CEOs need to be conversant, if not proficient, with financial statements.Click To Tweet!
Needless to say, leadership is the most important ability of a CEO. For those individuals who aspire to become a CEO, focus on making those you lead better. A demonstrated ability to assemble high-performing teams (as the personnel decisions CEOs make are the most important); and a strategic orientation is key.

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- Robert Johnson, President & CEO at The American College

A Chief Executive's Salary Potential

Lowest 10th%
$62,290
Median
$184,460
Highest 90th%
>$208,000

States with the Highest Employment Levels

STATES	2019 ANNUAL MEAN WAGE	NUMBER OF JOBS
California	$216,520	31,730
Florida	$181,000	26,300
Illinois	$221,180	10,010
New York	$215,490	8,990
Tennessee	$158,280	8,720

(Bureau of Labor Statistics)

How Do Your Skills Stack Up?

As reported by O*NET, these traits are ranked as either extremely or very important to the day to day life of a Chief Executive.

What You Will Learn With an MBA Degree?

A Master of Business Administration, or an MBA, usually offers diverse courses to help students prepare for opportunities in the business world. Schools with MBA programs, may feature courses like:

Business Fundamentals
Managerial Economics
Finance
Leadership
Multinational Marketing

An MBA typically helps students prepare for goals in entrepreneurship, management, finance, and other aspects of business. Courses could feature business fundamentals, organizational leadership practices, and other general knowledge areas. Additionally, concentrations might be available in accounting, human resources, global supply chain management, marketing, and other specialties, depending on students’ desired professional outcomes. Finally, courses could explore contemporary issues and concerns like business law, ethics, global issues and responsibility, and much more. Whether you are hoping to start a small business or take the helm of a multinational organization, you’ll likely find a course that interests you! You don't have to spend all your money either - affordable online MBA programs can be found!

Who are some influential or famous CEOs?

Below is a sampling from Newsmax's list of the 100 most influential business leaders in America. They ranked each candidates’ based on their net worth, the company’s brand value, as well as the company's position in the industry and global market.

Warren Buffett: CEO of diversified holding company Berkshire Hathaway Inc., and the third richest man in the world.
Rupert Murdoch: CEO of News Corp and 21st Century Fox
Sundar Pichai: CEO of Google
Tim Cook: CEO of Apple, the most valuable brand in the world, according to Forbes
Jeff Bezos: Founder and standing CEO of Amazon.com

FAQs About How to Become a CEO

What is the average salary a Chief Executive Officer makes?

According to the BLS, the 2019 median annual wage for Chief Executives was $184,460.

What general knowledge should a chief executive possess?

According to O*NET, chief executives should have knowledge in the following five key areas:

Administration and management
Personnel and human resources
Customer and personal service
Law and government
The English language

They should be able to use their experience to:

Handle financial and budgetary activities
Appoint department heads and assign responsibilities
Analyze operations and a company’s performance
Direct, plan, or implement policies, objectives, and activities in an organization

What skills does a CEO possess?

Chief Executives are usually proficient in areas such complex problem-solving, critical thinking, speaking and communicating effectively, negotiating, as well as judgment and decision making.

What are common types of software I would have to learn as a CEO?

Chief Executives use a variety of project management, human resources, and enterprise resource planning software, including Microsoft Office, Halogen e360, and Oracle E-Business Suite, just to name a few.

How many chief executives are there in the U.S.?

According to the U.S. Bureau of Labor Statistics, top executives held about 2.6 million jobs in 2018. Of those jobs, chief executives held about 263,200 jobs, while general and operations managers held nearly 2.4 million. The BLS predicts the occupation will grow 6 percent between 2018 and 2028, which is about as fast as average for all occupations. The BLS reports that as of May 2019, the the following industries employed the most chief executives: management of companies and enterprises, elementary and secondary schools, and state government; meanwhile, the BLS notes that general and operations managers worked for management of companies and enterprises; restaurants and other dining establishments; management, scientific, and technical consulting services; merchant wholesalers of durable goods; and computer systems design and related services.

What job titles are similar to or the same as a Chief Executive?

Chief Executives are called by many names. Some sample reported job titles include: Chief Diversity Officer (CDO), Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Nursing Officer, Chief Operating Officer (COO), Executive Director, Executive Vice President (EVP), Operations Vice President, President, and Vice President.

What professional organizations are there for chief executives?

Six professional organizations chief executives might consider joining include:

The Center for Association Leadership (asae): asae is a professional advocacy, training, and membership group for leaders across industries.
Young Presidents Organization (YPO): YPO is a professional organization for people in leadership roles.
Business Networking International (BNI): BNI is a referral-based networking group for entrepreneurs and professionals in charge of generating business.
Entrepreneurs Organization (EO): EO is a professional organization for chief executives who are also entrepreneurs.
The National Association of Chief Executive Officers (NACEO): NACEO is an invitation-only nationwide membership organization reserved primarily for senior-level executives. Perhaps keep your eye on this organization for later in your career.
An industry-specific professional organization such as the Association for Chief Executives of Sport (ACES)

Membership in organizations like these connects chief executives to other professionals in leadership positions. Many people in organizations like these enjoy opportunities to network (through directories and conferences, for example) and gain access to learning materials and other resources that may help them learn, grow, and navigate challenges. Other benefits that chief executives might derive are specific to each organization.

Job information sourced from O*NET

How to Become a Chief Executive Officer