CEO vs CFO – Roles and Responsibilities

In the corporate hierarchy, the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) are two of the most significant positions. Both are C-level executives, but their roles, responsibilities, and influence within the company are quite different.

The CEO: The Visionary and Decision-Maker

The CEO holds the highest rank within a company. They are responsible for making all major decisions and serve as the face of the company. The CEO oversees the operations of the entire company, ensuring all departments and employees are working towards the company goals.

The CFO: The Financial Strategist

The CFO is the highest-ranking executive in terms of the financial dealings of the company. The CFO’s primary role is to manage the company’s finances and grow revenue. They focus only on growth, risk mitigation, expansion, and managing the company’s finances. They oversee all the financial departments of the company, such as budgeting and accounting.

Hierarchy and Reporting Structure

The CEO is the top-most position at a company and reports only to the board of directors. The CEO is also hired or appointed by the board. On the other hand, the CFO is one level below the CEO, along with other C-suite positions like the COO, and reports to the CEO. The CFO is hired by the CEO.

Liaising and Representation

The CEO is the face of the company and represents the company to the public and others. On the other hand, the CFO is more concerned with investors, banks, and other financial institutions. At some companies, they are also expected to maintain relationships with the board.

Functional Role and Influence on Organizational Culture

The CEO charts the strategies and goals of the company along with the board and then delegates it to the next in-charge to follow through. The CEO is in charge of keeping the employees on track to meet the vision of the company in the long term. They set the tone for the company and the other leaders and employees of the company follow suit.

When it comes to organizational culture, the CEO is the ultimate leader. Everyone else in the company will look toward the CEO to establish the culture. Their behavior is what all others will accept and emulate. On the other hand, the CFO is not specifically sought after for overall company culture. Rather it is in their job description to be ethical and moral when it comes to finances. That said, as a leader at the company, and one at the very top, the CFO is expected to follow the culture as is everyone else.

CEO vs CFO Salary

The salaries of the CEO and CFO vary depending on a variety of factors, such as the size of the company, the experience of the CEO or CFO, the industry, the kind of company, and more. According to an Indeed report from February 2021, the average base CEO salary is $116,890 per year in the US, and the average base CFO salary is $133,859 per year.