Top executives often report to a board of directors.
Top executives plan strategies and policies to ensure that an organization meets its goals. They coordinate and direct work activities of companies and organizations.
Duties
Top executives typically do the following:
Establish and carry out departmental or organizational goals, policies, and procedures
Direct and oversee an organization’s financial and budgetary activities
Manage general activities related to making products and providing services
Consult with other executives, staff, and board members about general operations
Negotiate or approve contracts and agreements
Appoint department heads and managers
Analyze financial statements, sales reports, and other performance indicators
Identify places to cut costs and to improve performance, policies, and programs
The responsibilities of top executives largely depend on an organization’s size. In small organizations, such as an independent retail store, an owner or manager often is responsible for hiring, training, quality control, and day-to-day supervisory duties. In large organizations, chief executives typically focus on formulating policies and planning strategies, while general and operations managers direct day-to-day operations.
The following are examples of types of top executives:
Chief executive officers (CEOs), who are also known by titles such as executive director, managing director, or president,provide overall direction for companies and organizations. CEOs manage company operations, formulate and implement policies, and ensure that goals are met. They collaborate with and direct the work of other top executives and typically report to a board of directors.
There may be other types of chief executives—such as chief operating officers (COOs), chief financial officers (CFOs), or chief human resources officers—who manage a specific part of the organization. The knowledge, skills, and job duties that these executives have differ, depending on which department they oversee.
General and operations managers oversee activities that are too diverse to be classified into one area of management or administration. Responsibilities may include formulating policies, directing daily operations, and planning the use of materials and human resources. These managers make staff schedules, assign work, and ensure that projects are completed. In some organizations, the tasks of chief executive officers may overlap with those of general and operations managers.
Mayors, city managers, county administrators, and governors are chief executive officers of governments. They usually oversee budgets, programs, and the use of resources. Mayors and governors must be elected to office, whereas managers and administrators are typically appointed.
School superintendents and college or university presidents are chief executive officers of school districts and postsecondary schools. They manage issues such as student achievement, budgets and resources, general operations, and relations with government agencies and other stakeholders.
Top executives often work many hours, including evenings and weekends.
Chief executives held about 287,900 jobs in 2019. The largest employers of chief executives were as follows:
Self-employed workers
24%
Professional, scientific, and technical services
11
Government
9
Healthcare and social assistance
7
Manufacturing
6
General and operations managers held about 2.5 million jobs in 2019. The largest employers of general and operations managers were as follows:
Retail trade
12%
Professional, scientific, and technical services
11
Wholesale trade
9
Manufacturing
9
Construction
7
Top executives work in nearly every industry. They work for both small and large organizations, ranging from businesses in which they are the sole employee to firms with hundreds or thousands of employees.
Because top executives often are held responsible for their organization’s success, their work may be stressful.
Top executives frequently travel to attend meetings and conferences or to visit local, regional, national, or international offices of interest.
Top executives typically need many years of previous work experience.
Top executives typically need at least a bachelor’s degree and considerable work experience to enter the occupation.
Education
Many top executives have a bachelor’s or master’s degree in an area related to their field of work. Top executives in the public sector may have a degree in business administration, public administration, law, or the liberal arts. Top executives of large corporations may have a master’s degree in business administration (MBA).
College presidents and school superintendents are typically required to have a master’s degree, although a doctorate is often preferred.
Although many mayors, governors, and other public sector executives have at least a bachelor’s degree, these positions typically do not have any specific education requirements.
Work Experience in a Related Occupation
Many top executives advance within their own organizations, moving up from lower level management occupations or supervisory positions. However, some companies may prefer to hire qualified candidates from outside their organization. Top executives who are promoted from lower level positions may be able to substitute experience for education to move up in the organization.
Chief executives typically need extensive managerial experience, and this experience is expected to be in the organization’s area of specialty. Most general and operations managers hired from outside an organization need lower level supervisory or management experience in a related field.
Some general managers move into higher level managerial or executive positions. Executive training programs and development programs often benefit managers or executives.
Licenses, Certifications, and Registrations
Some top executive positions may require the applicant to have a license or certification relevant to their area of management. For example, some employers may require their chief executive officer to be a certified public accountant (CPA).
Important Qualities
Communication skills. Top executives must be able to convey information clearly and persuasively. They must discuss issues and negotiate with others, direct staff, and explain policies and decisions to people within and outside the organization.
Decision-making skills. When setting policies and managing an organization, top executives must be able to assess different options and choose the best course of action.
Leadership skills. Top executives must be able to shape and direct an organization by coordinating policies, people, and resources.
Problem-solving skills. Top executives need to identify and resolve issues within an organization. They must be able to recognize shortcomings and carry out solutions.
Time-management skills. Top executives do many tasks concurrently to ensure that their work gets done and that the organization meets its goals.
Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics
The median annual wage for chief executives was $184,460 in May 2019.
The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $62,290, and the highest 10 percent earned more than $208,000.
The median annual wage for general and operations managers was $100,780 in May 2019.
The lowest 10 percent earned less than $45,050, and the highest 10 percent earned more than $208,000.
In May 2019, the median annual wages for chief executives in the top industries in which they worked were as follows:
Manufacturing
$208,000 or more
Professional, scientific, and technical services
208,000 or more
Healthcare and social assistance
166,410
Government
110,230
In May 2019, the median annual wages for general and operations managers in the top industries in which they worked were as follows:
Professional, scientific, and technical services
$140,840
Manufacturing
118,180
Wholesale trade
104,880
Construction
102,270
Retail trade
73,190
Top executives are among the highest paid workers in the United States. However, salary levels vary substantially. For example, a top manager in a large corporation may earn significantly more than the mayor of a small town.
Similarly, earnings for general and operations managers differ across industries because their responsibilities also vary by industry.
In addition to salaries, total compensation for corporate executives often includes stock options and other performance bonuses. These executives also may enjoy benefits such as access to expense allowances, use of company-owned aircraft and cars, and membership to exclusive clubs. Nonprofit and government executives usually receive fewer of these types of benefits.
Top executives often work many hours and have irregular schedules, which may include evenings and weekends.
Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections program
Overall employment of top executives is projected to grow 4 percent from 2019 to 2029, about as fast as the average for all occupations. Projected employment growth varies by occupation.
Employment of general and operations managers is projected to grow 6 percent from 2019 to 2029, faster than the average for all occupations. Organizations will continue to rely on these workers to help them operate successfully.
Employment of chief executives is projected to decline 10 percent from 2019 to 2029. Improving office technology and changing organizational structures have increased these workers’ ability to perform tasks previously done by multiple chief executives. In addition, economic activity and employment has become increasingly concentrated in large, established companies, which may lead to fewer new jobs for these workers.
Job Prospects
About 218,300 openings for top executives are projected each year, on average, over the decade.
The high pay and prestige associated with these positions attract many qualified applicants. In addition to those arising from growth, openings are also expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Those with an advanced degree and extensive managerial experience will have the best job prospects.
Employment projections data for top executives, 2019-29
Occupational Title
SOC Code
Employment, 2019
Projected Employment, 2029
Change, 2019-29
Employment by Industry
Percent
Numeric
SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program