The CEO is what mean

Chief Executive (devoted to Executive Officer, or CEO, for short) is responsible for the daily operation and management in an enterprise's most senior management personnel, also known as Chief Executive (Hong Kong and southeast Asia) or the highest Executive (Japan). In Hong Kong, big business and big group CEO verbally also known as the "large class", this is a good with your respectful name, is the enterprise the helm.

Strictly speaking, the Chief Executive is an inappropriate name, it is devoted to English Executive Officer's blunt translation, word for word translation is the CEO, Chief Executive of the most appropriate. But because the term "chief executive" in mainland China has been widely spread, people have get used to the inappropriate appellation.

The basic responsibility of the CEO

In a nutshell, CEO to the company's board of directors is responsible for, and is often one of the members of the board of directors. Inside the company or organization has the final execution management decision-making authority. In smaller companies, chief executive may, at the same time, the board of directors and chairman and CEO, but these jobs in big companies tend to be made by different people as, avoid a person in the enterprise play the role of too much and have too much power, but also can avoid the company itself and the conflicts between owners (shareholders).

The main duties and responsibilities of a CEO is:

One, the operation of all major items of the company to make decisions, including increase or decrease of the financial, business direction, scope of business, etc.;

Second, to participate in the decision of the board of directors, execute the resolutions of the board of directors;

Three, presided over the company's daily business activities;

Four, foreign contract or processing operations;

Five, appoint or remove the company's senior management;

Six, regularly report to the board of directors of the business case, submit the annual report.

The CEO's duties can also include other establish, strengthen or change the enterprise culture, team building, etc.

The presence of the CEO, and history

CEO can be simply interpreted as business leaders and managers the joining together of two kind of identity. CEO system is essentially to some of the decisions of the board of directors transition into the hands of the manager. CEO the earliest origin of company governance structure, with the United States in recent years, some Chinese companies shall practise a system of chief executive, appeared first in the history of Chinese enterprises, the chief executive officer (CEO). The emergence of the chief executive systems of enterprises is a new challenge to the traditional corporate governance structure. Fundamentally speaking, the separation of ownership and management of the company's CEO.

CEO often may not have any stake in the company, but its decision-making power is very big, can make a big decision for the company's management. In fact, many companies will use shares or give gifts to warrants as part of CEO compensation. So, despite the CEO may not have equity, initially but many ceos at work after a period of time, will have the company equity, or he/she is under the condition of the voluntary, will earn yourself with a salary and bonus (bonus) to buy shares in the company.

To set up the CEO has become internationally prevailing a way of corporate governance. For the most part in the world top 500 enterprises, enterprises have the job. CEO first appeared in the late 1990 s in our country some of the network company, where the CEO is often a self-styled, there was no attention, also very few people to study this term what it means to Chinese enterprises. Later, the chief executive in many companies, especially traditional Chinese big companies have, for example, haier's Mr Zhang, Chen Weirong chunlan TaoJianXing, konka, changhong NiRunFeng subsequently renamed the CEO. According to incomplete statistics, by 2002 China's self-proclaimed CEO in the company has reached 12000.

Company CEO system is adapted to modern enterprise system. Under the modern market economy system, the enterprise management decisions to the most capable to manage the company's person, this person is a CEO, is the chief executive. Sometimes, as a corporate CEO, chairman or vice chairman of the board of directors, may also be the general manager.

The executive team under the leadership of the CEO, including: general manager, deputy general manager, Chief Financial Officer (CFO, devoted to Financial Officer), the personnel director, director of Operations (COO, devoted to Operations Officer), each department manager, Chief accountant, Chief engineer, etc.

In foreign countries, the CEO is in the corporate governance structure has been set up and operation on the basis of mature. Since the 1980 s, with the expansion of multinational companies global business, enterprise internal information communication increasingly busy. Due to policy makers and executive information transfer between block and communication disorders, affecting executive the major decisions of the enterprise's rapid response and the ability to execute, some enterprises began to the board of directors, chairman, general manager of the traditional type of corporate governance structure to change. CEO is one of the products of this kind of change.

The real meaning of CEO system

The real meaning of CEO system, is the job more efficient operation and management for the enterprise open new avenues of research. CEO reflect really the separation of ownership and management rights. Ceos have plenty of power, this position when performing its duties does not need to ask for instructions the boss or the top management in advance.

Since the 1980 s, with the expansion of multinational companies global business, enterprise internal information communication increasingly busy. Due to policy makers and executive information transfer between block and communication disorders, affecting executive the major decisions of the enterprise's rapid response and the ability to execute, some enterprises began to the board of directors, chairman, general manager of the traditional type of corporate governance structure to change. CEO is one of the products of this kind of change. It appears in a certain sense represents the original board some decision-making power in the hands of a transition into the hands of the original management layer.

CEO rather than general manager, President, its power is very big, there are 40% ~ 50% is the power of the chairman. Become a small board, the board of directors for examination and assessment of its main function is to choose, and formulates the CEO centered management and its salary system. CEO is not the investor of the company, but it has decision-making power on major decisions. Abroad, the main constraints on the CEO is not the board of directors, but the enterprise a called strategy committee. This strategy committee is to support or deny the main authority in the CEO business decisions. In many countries, most is not in the enterprise strategic decision committee of personnel, more than the investors in the enterprise, but the society engaged in enterprise management, economics, law and so on professional elite. So, is the enterprise human capital control, rather than the investor, the investor only in the interests of property rights on the return of interest.

The establishment of the CEO, reflected the almighty, people-oriented and ideas for the reasonable pricing of human capital. We often speak of two rights separation theory on the basis of enterprise legal person governance structure model are being challenged. More and more facts show that modern production is from the surrounding machine to revolve around knowledge. Human capital which made the monetary capital dominant position. People is not hard to find, yearly salary, stock options and other similar incentives is only for reasonable pricing entrepreneur human capital market and a logical system arrangement. In the mature market environment, entrepreneur human capital is bound to find their own reasonable price. Human capital as a kind of system arrangement after entering enterprises, has sparked huge enterprise property right system reform. Human capital in addition to the salary, but also should pay property returns. Enterprise owned by the investor completely phenomenon is gradually changing.

CEO, also marks the traditional theory of division of ownership and management rights must also have an important correction. In the face of economic globalization and China's entry into the WTO, many enterprises with a strong sense of urgency, busy planning and adjustment, making, to meet the challenges of the world market. CEO is in such a background in our country. Also should see, CEO of some enterprises in our country is just on the title change, daily responsibility system or the general manager under the decision of the board of directors, actually is not in the true sense of the CEO.