Chief Executive Officer (CEO)

Meaning & Definition 

The Chief Executive Officer (CEO) is the individual with the highest authority in an organisation, who has responsibility for leadership, strategy and performance of an organisation as a whole. The CEO will also make major decisions, as well as aligning the actions of the organisation with its strategic goals, and represent the organisation to the board, investors, employees and other external contributors.

Important aspects of Chief Executive Officer (CEO)

• Establishing the vision, culture, and long-term direction of the company.
• Supporting leadership recruitment and succession planning efforts.
• Contributing to decisions regarding organizational structure, policy development, and personnel matters.
• Driving business results through increased growth and accountability and performance.
• Finally responsible for making all significant operational and strategic business decisions.

Statutory & Policy Alignment 

• Both the payment and appointment of a CEO must be approved by the Board of Directors, and in some cases, by the shareholders.
• The Companies Act of 2013 outlines the duties of a CEO and sets out guidelines for their appointment as well as for how to manage their performance.
• The SEBI (LODR) Regulations of 2015 apply to listed entities in regard to the required disclosure and governance of their officers.