What is the difference between CEO, COO and CFO?
The CEO, COO and CFO belong to the C-level executives, the level of top managers who lead the entire structure of the company. These executives play an important role in managing the company’s business structure and making important decisions throughout the company.
Now let’s take a closer look at the who’s who in top management – below the C-Levels.
What is the role of the CEO in the company
According to abbreviationfinder, CEO – chief executive officer – usually runs a company. Often reports to the board, which is chaired by the chairman. Sometimes the positions of CEO and Chairman of the Board of Directors can be held by one person, and this is also a common case.
In common parlance, the CEO is at the top of the corporate hierarchy and usually heads all other individuals in C-level positions as well.
The CEO is responsible for the strategic, financial and operational leadership of the company and works closely with the Board of Directors and the senior management team. A company’s CEO can come from any professional background if they have developed significant leadership and decision-making skills.
In some companies there is no CEO position, but it can be replaced by the position of President.
President – is a position typically used in a small company that does not have a CEO. In a larger company, the president is usually the second person in the company.
The role of the CEO in a company is extremely important. Basically, the CEO is the face of the company.
The CEO can also be a member of a company’s board of directors, just as an example – Mark Zuckerberg at Facebook is also the founder of the company.
The same is true at Berkshire Hathaway, where Warren Buffett combines those two positions as chairman and CEO.
What is the role of the COO in the company
COO – The Chief Operations Officer. The CFO manages the day-to-day operations of the company, including internal business operations. Thus, the CFO allows the CEO to focus on strategic operations.
What is the role of the CFO in the company
Now let’s talk about the CFO – Chief Financial Officer. As the name suggests, the CFO is responsible for finances. Strategically, the CFO observes market trends, analyzes them and makes financial forecasts.
In the financial industry, the CFO position represents the top of the corporate ladder for financial analysts and accountants. The CFO manages the investment portfolio and is generally responsible for accounting, investment research, and financial analysis. A corporate CFO thinks globally, leading the search for new business opportunities and weighing the financial risks and benefits of each potential venture.
Who has more power CEO or CFO
The CEO is the highest overall position in the entire company and the CFO is the highest financial position.
Although both positions are extremely important in any company, their responsibilities differ significantly. The CFO reports directly to the CEO.