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The C Suite is a term used to describe a company’s executive-level roles with titles beginning with the word chief, such as chief executive officer, chief financial officer and chief operations officer. There are many more titles beginning with the word chief, and depending on the type of organization, these executives can lead academic, marketing, technical, financial or other departments. These positions earned their nickname by being the most coveted jobs in a company, and many business school students aspire to reach this level of administration. It requires a great deal of maturity and experience to lead an organization, and college is only the first step on the path to executive management.
How to Become a C-Level Executive
Most top executives have degrees in business, economics or a another subject of expertise, and many of them have advanced degrees in business administration. Not all CEOs have college degrees, however, as some people reach the top level simply by being exceptionally talented, such as Facebook CEO Mark Zuckerberg or the founder of Virgin Group, Richard Branson. It’s not necessary to have a master’s degree to get a job as a C-level executive, although a deep understanding of business, economics, finance, technology or another subject are often necessary to carry out the duties of the position. The most important quality an executive needs is perspective, and this quality usually requires a lot of experience as well as some natural talent. Chief executives are the leaders of their organizations, and they need to be able to see the big picture as well as the best path forward for the company.
Resource: What is a Typical Day Like for a CEO?
Because chief executives have so much responsibility, they’re sometimes criticized quite harshly for their decisions. CEOs are sometimes forced to step down due to leadership that took the company in a wrong direction. It’s often necessary for a chief executive to take risks in order to put the company in a better position, and when the company is at risk, there is always a chance that it could be hurt. For example, J.C. Penney suffered from slow sales when many department stores were experiencing the same weak profits due to customers shopping online or wearing old clothes, and CEO Ron Johnson tried to jump start the company’s sales by reorganizing the marketing and sales strategies. The decision was a disaster, and it cost J.C. Penney almost $1 billion. Johnson was replaced by Marvin Ellison, an executive with experience bringing companies back from the brink of failure.
Salary and Job Outlook for Chief Executives
According to the U.S. Bureau of Labor Statistics, the median annual salary for C-level executives was $168,140 in 2012, and the top-earning 10 percent made at least $187,200. However, there is seemingly no upper limit to salaries in the C Suite, and CEOs of major corporations usually make tens of millions of dollars per year before receiving their bonuses. The job growth rate for executives is expected to be about average for all occupations in the economy, although job title inflation will cause C-level positions to carry less prestige in the years to come.
The qualities needed in business leaders have stayed the same throughout the 20th and 21st centuries, although the changing economy and society place greater demands on executives. If you have the aspiration to reach the C Suite, stay focused on your goal and build perspective by analyzing the world around you.
