2nd Main Responsibility of a CEO

June 4th, 2008

Yesterday, I completely forgot to mention the second most important role of a CEO!  Let’s recap:

#1: Provide the team with the necessary resources.
#2: Build shareholder value

#2 is the one I’ve known the most. Really a CEO works for the Board of Directors (who directly represent the shareholders). A CEO’s job is typically summed up in the 40,000 foot overview definition of “build shareholder value.” Meaning, always focus on increasing the valuation of a company.

This is obviously all encompassing, since everything from your team hires, technology development to revenue generation directly impact the valuation of a company.

So, there you go - that’s the best way to describe a CEO…

CEO = The head of an organization responsible for building shareholder value and facilitating all the resources necessary for the company to act on it’s business plan.

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This entry was posted on Wednesday, June 4th, 2008 at 3:34 am and is filed under CEO Education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “2nd Main Responsibility of a CEO”

  1. Zach Katkin Says:
    June 11th, 2008 at 2:33 am

    Sounds like #1 & #2 are a lot alike. I like this one best though.

  2. Zach Katkin Says:
    June 11th, 2008 at 2:34 am

    Okay, I’m an idiot. CEOs mess up too! I see what you did (I just jumped to the highlighted sentence). I agree with you 100% and on the order of the responsibilities.

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