Why do companies need people in charge of the entire company? I get that certain parts of the company (i.e. production, shipping, marketing, etc) need a leader / someone who keeps an overview. But why do they need someone at the top of the company, who’s just there to.. be someone to represent the company? In most cases I’ve heard of, the CEO is in charge of pretty much everything, but barely knows anything about every individual thing the company does. So why not have no CEO, and instead just leaders of individual groups? Why does someone have to be on top of everyone?
In: 0
Big companies are usually owned by thousands, if not hundreds of thousands, of shareholders. The Board of Directors of a company are there to represent the interests of those shareholders (owners). The CEO is the employee of the company who reports directly to the Board of Directors, and therefore the owners of the company.
Ultimately, they are responsible for the highest-level stategic decisions a company makes. For example, are you going to abandon phsical copies of your products and go 100% digitial? Are you going to develop a 5-year plan to expand into another country? Are you going to switch to a fully remote company or adopt a hyrbird working model? All of these decisions are ‘above’ the level of department managers, CTOs, CFOs, etc and invovle the direction of the whole company. The CEO will take input from other people but ultimately, they take the big, strategic decisions.
Latest Answers