The CEO decides how the corporation functions on a technical level on a day-to-day basis, and he makes final decisions on what environmental path a corporation follows. Every financial decision that was not previously arranged in a corporation protocol passes by him. He can decide or undo hirings and firings if he wants to, but unless it concerns high corporation jobs he usually does not interfere with these decisions. The CEO often takes it upon himself to be board chairman. Those in charge over the individual departments will communicate with him about anything that goes on in the corporation.
CEOs in the old days could work themselves up from lower positions without an educational background. Experience would have been enough to get to the top. Occasionally you can still find a CEO of a corporation who reached that position that way. Overall, however, in the business world of today, experience is no longer the only requirement to make it to a CEO. Extensive schooling is an absolute must, together with experience. Many CEOs started at very low-level positions in a corporation long before they finished their education. A high school diploma alone does not bring you much further than the position of filing clerk or receptionist. For a CEO position, a good business administration degree is about the minimum requirement.
Very often an engineering degree is recommended. Do not wrap up school with a bachelor’s degree if you are an aspiring CEO. It is very rare for a CEO with little seniority in the corporation is hired on. Overall CEOs have long-time company experience before they reach this top position. Fifteen to twenty years with the company is definitely no exception, and by the time they reach the position of CEO they are generally in their fifties. CEOs do not have to pass a skills test before they enter their new position. They are chosen for the position based on their lengthy record with the corporation and their entire corporation experience is considered their skills test. International experience or a previous career in the military can make it a little easier to land at the top of the corporate ladder.
Many corporations do not keep their CEO in place for more than four or five years. Because this is usually a position that is filled by an older person, the next step is often retirement. Some CEOs, it seems, are addicted to work and their top position and move on to another company in time.
Overall, CEOs make very good money. Some as much as $20 to $50 million a year for CEOs of major corporations. Smaller corporations work with much lower numbers, of course. Occasionally a CEO who has been making an extremely high income will work a year for free or almost for free to save the corporation when hard times come across.
The position of CEO of a corporation is on top of the wish list of most business students. Only a very small number ever gets to that position.
