Chief Executive
The Chief Executive is the person with the highest decision-making power in a company, in German usually called Vorstandsvorsitzender or Geschäftsführer. They set the direction of the company and bear responsibility for how it is run.
Every larger company needs a person who makes the final decisions. In English this person is called Chief Executive, often also Chief Executive Officer, or CEO for short. In German, one says Vorstandsvorsitzender or Geschäftsführer. This person determines which products the company builds, which countries it expands into, and what money is spent on. However, they are not the owner: the Chief Executive is employed and can also be dismissed. At large companies, the body that does this is a control panel representing the owners — in Germany, the Aufsichtsrat (supervisory board).
Why a single personnel decision moves share prices
On the stock market, the Chief Executive is considered the most important individual factor for a company alongside the business itself. Investors buy shares because they trust a strategy. When the person at the top changes, the strategy often changes too. That is why share prices react noticeably when a CEO leaves unexpectedly.
A well-known example from the AI industry is November 2023. OpenAI’s board dismissed Chief Executive Sam Altman, and just a few days later he was back in office. During those days, it was openly debated whether the company would even continue to exist. This shows how strongly a company can depend on a single leader.
Added to this is the responsibility toward the outside world. The Chief Executive explains quarterly results, apologizes after scandals, and sits in parliamentary hearings. If something goes wrong, they are the one who leaves — even if the mistake happened further down the chain.
Between the board and the business units
At public companies, there is a control body above the Chief Executive. In Germany this is the Aufsichtsrat, in English-speaking countries the Board of Directors. This body appoints the Chief Executive, oversees them, and sets their pay. However, it does not run day-to-day operations itself.
Below the Chief Executive works a circle of other unit heads. The finance chief is called Chief Financial Officer, or CFO for short, and is responsible for figures and capital. The technology chief often holds the title Chief Technology Officer, or CTO for short. Newer titles such as Chief AI Officer bundle responsibility for artificial intelligence. The Chief Executive coordinates these areas and decides in cases of dispute.
Pay usually consists of only a small fixed salary. A large portion is shares or options, which are only paid out after several years. The idea behind this: those who hold shares themselves think more long-term. Critics counter that such packages can also encourage risky bets.
The term in the news and corporate culture
The title appears in business news almost daily. Phrases such as “Nvidia's CEO” or “Alphabet chief” always refer to this role. At technology companies, some names are as well known as the product itself: Tim Cook at Apple, Satya Nadella at Microsoft, Jensen Huang at Nvidia. For companies that are not publicly traded, the term used in Germany is more often Geschäftsführung (management).
A common misconception is equating this role with the founder or owner. Both can coincide, but don’t have to. Mark Zuckerberg founded Meta and continues to run it. Tim Cook did not found Apple and owns only a tiny stake in it.
Tenure is also often overestimated. At large publicly traded companies, a Chief Executive stays in office for only a few years on average. Weak results, missed technology waves, or conflicts with the board end many tenures earlier than planned. Anyone reading corporate news should therefore understand the name at the top as a variable, not a constant.