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CEO and CFO are commonly used in businesses, especially in multinational companies. But what exactly do CEO and CFO mean? What are the meanings and exact roles of these positions? Let's explore CEO and CFO in the following article.
Below, Mytour shares information about the CEO and CFO positions. Join us as we delve into these roles.
What is CEO? What does it stand for?
CEO, an abbreviation for Chief Executive Officer, embodies the leadership responsible for executing the strategies and policies of the board of directors. In tightly organized corporations, the chairman of the board often assumes the role of CEO. In Vietnam, titles like General Director, CEO, and Company Director are used interchangeably to represent the CEO position.
Example: Steve Jobs served as both CEO and chairman of Apple.
The CEO is the visionary leader of the company, pivotal in all organizational activities. Some primary tasks typically undertaken by CEOs include:
- Setting strategies to realize the company's vision and mission.
- Taking responsibility for planning and providing specific directions for the company.
- Directing the construction and implementation of business plans approved by the board of directors.
- Bearing responsibility for the profit and growth of the company. Ensuring the achievement of short-term and long-term goals.
- Building, developing, and promoting the company's image and brand.
- Approving financial policies, monitoring, controlling, evaluating, and adjusting budgets and expense standards. Approving income/expenses, preparing regular budgets.
- Organizing, managing, inspecting, and evaluating company business activities regularly.
- Approving development projects, product diversification; distributing and marketing products through various channels in the market.
- Developing personnel plans, recruitment. Approving regulations, appointment policies, dismissal, salary regulations, bonuses, allowances. Approving employee evaluation results and determining rewards...
What is CFO? What does it stand for?
CFO stands for Chief Financial Officer, the company's financial director, directly managed by the CEO. The CFO is responsible for managing the company's finances, including researching, analyzing, and building financial plans; efficiently utilizing capital resources, financial planning, and analyzing the company's financial strengths and weaknesses, proposing remedial actions.
CFO has four main roles: steward, operator, strategist, and catalyst.
- Steward: Safeguarding and preserving the company's assets through effective risk management and ensuring the accuracy of financial records.
- Operator: Ensuring the efficient operation of basic financial activities.
- Strategist: Developing a consistent development strategy or enhancing the effectiveness of the company's overall development strategy in each phase.
- Catalyst: Maintaining and ensuring the permeation of financial thinking in the company while carrying out tasks and evaluating and accepting risks within the company.
In this article, Mytour has shared insights into what CEO and CFO stand for, their responsibilities in businesses and companies. We hope this article helps you gain a clearer understanding of CEO and CFO roles.
