Pardon my venting, but what does a CEO actually do?

Platapus · 09-08-12, 06:37 PM

I work for a non-profit company. Our CEO gets $1,100,000 per year in salary and "compensation". What exactly does a CEO do?

I can tell you that she is not expanding our business area nor is she bringing in new business. She is very good at telling us that we won't be getting any CoL adjustments to our salaries. Raises are just a distant memory from years back.

She is actually reducing our business areas. She calls it "focusing" and "branding". So we are doing just what we have always been doing but now we are putting all our contractual eggs in one basket.

Hell, I can do nothing to grow the company and I would only charge $300,000 per year as CEO.

If a CEO is not growing the company by expanding business areas and/or bringing in new customers, what exactly does CEO do? Besides having her picture taken and collecting over a million dollars per year?

Her big business plan? We need to reduce the number of printers. That's how we are going to be more profitable. By the way, she flew out here First Class to tell us this recently.

Just two questions

1 Just what does a CEO do other than build business
2 How can I get a cushy job like this where I can get 1.1 M and have the business strategy of just doing less than what we did last year?

/rant

Tchocky · 09-08-12, 08:00 PM

The CEO fulfills the role of occupying boardroom space. How does she rise to such a position? By not asking questions! Bad Platapus!

TwoGamers · 09-08-12, 08:21 PM

They hire people to run there company. You got a problem with that?

Takeda Shingen · 09-08-12, 08:27 PM

http://en.wikipedia.org/wiki/Chief_executive_officer

Really?

CCIP · 09-08-12, 09:49 PM

While it's ironic for me to be defending corporate officials, think of this as a question that's kind of similar to "what does the captain of a ship actually do?" It's easy to ask that question in a loaded sort of way, because the captain of a ship does not (and is normally not supposed to) have his hands on the wheels, doesn't actually hit buttons that fire weapons, and usually has less specialist knowledge about any given system on his ship than crew that are assigned and trained specifically for that system. So it might look like captain, or in our case the CEO, isn't doing much to warrant his rank and pay compared to his subordinates that do the stuff, just because he's not physically doing as much as people under his command. But does that mean he's useless?

A CEO, like the captain of a ship, has an executive role, which basically boils down to being the decision-maker and responsiblity-taker. The position is (at least in theory) rewarded for the fact that the person chosen for it is trusted to make the right decisions on behalf of everyone, and to take responsibility for the results - good or bad. Because responsibility always carries risk and requires high levels of trust, the theory is that the person in the top executive position needs to have the best incentives to maintain trust and readiness to make decisions, and offset the ever-present risk of taking the largest measure blame if things go wrong.

Of course in practice that doesn't quite always work that way, but don't underestimate the importance of professional decision-makers. They are key people to running any organization. Ship captains are a good model of exactly that, for example.

Buddahaid · 09-08-12, 10:59 PM

In my observations, the CEO does whatever it takes to meet profit goals, including gutting core systems, and then jumping ship before the roof caves in. In this way they can show how savvy they are to the new victim, get a larger salary and take no responsibility for the mess they left behind.

Platapus · 09-09-12, 10:09 AM

Quote:

Originally Posted by CCIP

think of this as a question that's kind of similar to "what does the captain of a ship actually do?" It's easy to ask that question in a loaded sort of way, because the captain of a ship does not (and is normally not supposed to) have his hands on the wheels, doesn't actually hit buttons that fire weapons, and usually has less specialist knowledge about any given system on his ship than crew that are assigned and trained specifically for that system. So it might look like captain, or in our case the CEO, isn't doing much to warrant his rank and pay compared to his subordinates that do the stuff, just because he's not physically doing as much as people under his command. But does that mean he's useless?

Great point, but there are critical differences between a captain and a CEO.

The captain of a ship is held ultimately responsible for anything good or bad that happens. I mean really held responsible. There is balance. When was the last time a CEO ever went down with the company. Captains are the last to abandon ship, but CEOs seem to be the first to jump ship.

The ship's captain also gives direction, often literally, True the captain is not the one turning knobs or even calculating courses, but the captain is the one making the decisions on where the floaty thing is headed. In other words, the captain is the one who really knows what the ship is supposed to do. I am not seeing that in my CEO.

There just does not seem to be any accountability.

And the biggest difference seems to be that a captain cares about the ship. The ship is a part of the captain's life. It is almost like a marriage.... until sinking do we part.

Can the same be said about CEO's? Perhaps they would fight more for the company if they did not have the platinum ejection seat.

I am just bitter.

the_tyrant · 09-09-12, 04:00 PM

Ahh, the classic "What do leaders do" question.

A opinion I often hear is, if you can't notice the leader, he/she is a good leader. For example, everyone curses the captain when the ship is going down, but when the ship is sailing smoothly, people don't really think of the captain.

I kind of follow economic news, and my conclusion is, if you are a bad CEO, the columnists would be all over you. But if you are doing a good job, or at least a passable job, you don't really get noticed

soopaman2 · 09-09-12, 04:06 PM

I answer the question posed in the title.

They take the credit for the blood sweat and tears of the proles who work under them.

Then they cut our vacations, and sick days, give themselves a raise, then spend 4 months in the Bahamas.

yubba · 09-10-12, 06:42 AM

He laughs all the way to the bank

09-08-12, 06:37 PM	#1
Platapus Fleet Admiral Join Date: Oct 2006 Posts: 19,362 Downloads: 63 Uploads: 0	Pardon my venting, but what does a CEO actually do? I work for a non-profit company. Our CEO gets $1,100,000 per year in salary and "compensation". What exactly does a CEO do? I can tell you that she is not expanding our business area nor is she bringing in new business. She is very good at telling us that we won't be getting any CoL adjustments to our salaries. Raises are just a distant memory from years back. She is actually reducing our business areas. She calls it "focusing" and "branding". So we are doing just what we have always been doing but now we are putting all our contractual eggs in one basket. Hell, I can do nothing to grow the company and I would only charge $300,000 per year as CEO. If a CEO is not growing the company by expanding business areas and/or bringing in new customers, what exactly does CEO do? Besides having her picture taken and collecting over a million dollars per year? Her big business plan? We need to reduce the number of printers. That's how we are going to be more profitable. By the way, she flew out here First Class to tell us this recently. Just two questions 1 Just what does a CEO do other than build business 2 How can I get a cushy job like this where I can get 1.1 M and have the business strategy of just doing less than what we did last year? /rant __________________ abusus non tollit usum - A right should NOT be withheld from people on the basis that some tend to abuse that right.

09-08-12, 08:00 PM	#2
Tchocky Navy Seal Join Date: Jul 2004 Posts: 5,874 Downloads: 6 Uploads: 0	The CEO fulfills the role of occupying boardroom space. How does she rise to such a position? By not asking questions! Bad Platapus! __________________ [SIGPIC][/SIGPIC]

09-08-12, 09:49 PM	#5
CCIP Navy Seal Join Date: Apr 2005 Location: Waterloo, Canada Posts: 8,700 Downloads: 29 Uploads: 2	While it's ironic for me to be defending corporate officials, think of this as a question that's kind of similar to "what does the captain of a ship actually do?" It's easy to ask that question in a loaded sort of way, because the captain of a ship does not (and is normally not supposed to) have his hands on the wheels, doesn't actually hit buttons that fire weapons, and usually has less specialist knowledge about any given system on his ship than crew that are assigned and trained specifically for that system. So it might look like captain, or in our case the CEO, isn't doing much to warrant his rank and pay compared to his subordinates that do the stuff, just because he's not physically doing as much as people under his command. But does that mean he's useless? A CEO, like the captain of a ship, has an executive role, which basically boils down to being the decision-maker and responsiblity-taker. The position is (at least in theory) rewarded for the fact that the person chosen for it is trusted to make the right decisions on behalf of everyone, and to take responsibility for the results - good or bad. Because responsibility always carries risk and requires high levels of trust, the theory is that the person in the top executive position needs to have the best incentives to maintain trust and readiness to make decisions, and offset the ever-present risk of taking the largest measure blame if things go wrong. Of course in practice that doesn't quite always work that way, but don't underestimate the importance of professional decision-makers. They are key people to running any organization. Ship captains are a good model of exactly that, for example. __________________ There are only forty people in the world and five of them are hamburgers. -Don Van Vliet (aka Captain Beefheart)

09-08-12, 10:59 PM	#6
Buddahaid Shark above Space Chicken Join Date: Jun 2008 Posts: 9,319 Downloads: 162 Uploads: 0	In my observations, the CEO does whatever it takes to meet profit goals, including gutting core systems, and then jumping ship before the roof caves in. In this way they can show how savvy they are to the new victim, get a larger salary and take no responsibility for the mess they left behind. __________________ "However vast the darkness, we must provide our own light." Stanley Kubrick "Tomorrow belongs to those who can hear it coming." David Bowie

09-09-12, 04:00 PM	#8
the_tyrant Admiral Join Date: Jun 2010 Location: Canada Posts: 2,272 Downloads: 58 Uploads: 0	Ahh, the classic "What do leaders do" question. A opinion I often hear is, if you can't notice the leader, he/she is a good leader. For example, everyone curses the captain when the ship is going down, but when the ship is sailing smoothly, people don't really think of the captain. I kind of follow economic news, and my conclusion is, if you are a bad CEO, the columnists would be all over you. But if you are doing a good job, or at least a passable job, you don't really get noticed __________________ My own open source project on Sourceforge OTP.net KGB grade encryption for the rest of us

09-08-12, 08:21 PM	#3
TwoGamers Officer Join Date: Jul 2012 Location: Australia Posts: 240 Downloads: 9 Uploads: 0	They hire people to run there company. You got a problem with that?

09-08-12, 08:27 PM	#4
Takeda Shingen Navy Seal Join Date: Mar 2000 Posts: 8,643 Downloads: 19 Uploads: 0	http://en.wikipedia.org/wiki/Chief_executive_officer Really?

09-09-12, 04:06 PM	#9
soopaman2 Der Alte Join Date: Sep 2011 Location: New Jersey, USA Posts: 3,316 Downloads: 61 Uploads: 0	I answer the question posed in the title. They take the credit for the blood sweat and tears of the proles who work under them. Then they cut our vacations, and sick days, give themselves a raise, then spend 4 months in the Bahamas. __________________ If Hitler invaded Hell I would make at least a favourable reference to the devil in the House of Commons. -Winston Churchill- The most fascinating man in the world.

09-10-12, 06:42 AM	#10
yubba Admiral Join Date: Sep 2009 Location: in a neighborhood near you Posts: 2,478 Downloads: 293 Uploads: 2	Oh oh oh I got this one He laughs all the way to the bank