by CourseAdvisor
How to Become a Business Executive
The people who identify an organization's objectives and establish the strategies and policies to meet them are the chief executives. At the neighborhood corner store, Mom and Pop decide whether to sell lottery tickets or open a soda fountain. In a school system, the school superintendent steers the ship. However, in large corporations, a group of people with well-defined responsibilities shares that role. Some particular concerns of top management are:
- Planning business goals and strategy
- Corporate governance and ethics
- Risk management
- Public relations
- Mergers and acquisitions
- International business
The ideal business executive is adept at business strategy, management of both personnel and business risk, and facilitating employee teamwork and creativity.
- Chief Executive Officer (CEO)
The Chief Executive Officer is at the top of the chart. CEOs often have experience in business development as well as in identifying business opportunities, seeing the "big picture," and setting short-term and long-term goals. CEOs in publicly traded companies are overseen by a board of directors that is responsible for the success or failure of the business, and has the authority to hire and fire the CEO.
- Chief Operating Officer (COO)
COOs often delegate a portion of their responsibilities to chief operating officers who oversee some of the day-to-day operations of the business. The managers who direct the various departments within the company may report to the chief operating officer.
- Chief Financial Officer (CFO)
The Chief Financial Officer is responsible for meeting the organization's financial goals and budgets. CFOs are experts in investments, risk management, cash management, raising capital, mergers and acquisitions.
- Chief Information Officer (CIO) or Chief Technology Officer (CTO)
Chief Information Officers and Chief Technology Officers are information technology experts. They ensure that computers systems are used optimally to achieve the organization's overall goals and that data processing functions are secure. In addition, chief technology officers typically plan and direct any new technology developments a company decides to pursue.
- General Manager and Operations Manager
Operations Managers oversee the day-to-day production of goods or services by their companies. General Managers are responsible for the company's bottom line (profits) as well as daily operations. The duties of general managers may overlap with those of CEOs in some organizations.
Education Requirements
There are no specific educational requirements for business executives although many have MBAs, other graduate business degrees, or a bachelor's degree. Many executives are promoted up through lower levels of management. A proven track record, experience in business, and leadership qualities are essential.
Salary Information
Salaries for business executive positions vary widely. The median annual salary in 2004 for general and operations managers was $77,000. It was $140,000 for chief executives. Many executives receive stock options, dividends, and bonuses as well.
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Source: Occupational Outlook Handbook, 2006-2007 Edition; Bureau of Labor Statistics, U.S. Department of Labor.
