What is a corporate officer?
Corporate officers are appointed to handle the essential daily operations of a company. They oversee different areas of business and help inform high-level business decisions. Corporate officers are usually company employees with top management positions, but if a corporate officer doesn’t provide significant services to the company, they may simply be an unpaid advisor.
Corporate officers are responsible for maintaining awareness of company objectives and policies, employee behavior, financial records and other important areas. They have a responsibility to avoid conflicts of interest and promote the best interest of the company and any shareholders. Corporate officers may be held liable for legal obligations in their area of expertise. For example, a corporate treasurer could be held responsible for unpaid business taxes.
When filing your business’s articles of incorporation, you can name corporate officers outright or explain the process for electing or appointing them. Businesses can have a single corporate officer or multiple officers with specialized responsibilities.
Officers of a corporation and small business
When first incorporating your business as its own legal entity, you should create a plan for building your board of directors and appointing officers. In some small businesses, a single owner-operator can fill multiple corporate positions. As your business grows, it may become necessary to delegate those positions to other trusted employees.
Why hire a corporate officer?
When you are ready to expand your business, you might want to hire an employee to act as a corporate officer. Think about your own business strengths and decide what parts of your business could benefit from outside expertise. You can hire corporate officers right away when you are ready to incorporate, or you can slowly grow your business and appoint new officers whenever you need help overseeing daily operations.
Types of corporate officers
The corporate officers required to be on your board of directors may vary by state, but usually, you need at least three: a president, a treasurer and a secretary. You can have an unlimited number of officer positions, and one person can hold as many positions as required. Some of the most common officer positions include:
Chief executive officer (CEO)
The CEO is typically the top-ranking officer within a business. They oversee all operations and coordinate the responsibilities of other officers on the board of directors. CEOs have the authority to make significant business decisions to promote the success of the company. CEOs can also be known as the managing director or president, though some companies have both a president and a CEO.
Duties:
- Communicating with shareholders and business partner
- Developing a business strategy
- Creating a mission to guide the company
- Collaborating with other executives
- Researching market risks
- Setting and maintaining ethical standards
Qualifications:CEOs don’t always need a post-secondary education, but a bachelor’s degree, MBA or other graduate degree in business can be beneficial. They should have a well-rounded understanding of finance, human capital management and business strategies. When hiring for a CEO, look for candidates with strong skills in written and oral communication, problem-solving, critical thinking, time management and organization.
Read more:How to Hire a CEO
Chief financial officer (CFO)
Also known as a treasurer, a chief financial officer is in charge of all the budgetary and financial aspects of a business. They communicate with other corporate officers to analyze the best financial structure for the company, review strengths and weaknesses and make long-term plans for increasing cash flow.
Duties:
- Overseeing accounting and financial reporting
- Investing company funds
- Securing financing
- Analyzing cash flow
- Economic forecasting
Qualifications:CFOs should have extensive financial knowledge and at least a bachelor’s degree in accounting, finance, economics or a related field. On-the-job experience managing a team in a financial context is also essential. They should have exceptional attention to detail, accuracy and analytical skills.
Chief operations officer (COO)
The COO of a business is in charge of all administrative functions in a company. They handle most internal affairs and often report directly to the CEO. COOs may also have the title of vice president or director of operations. COOs translate the overall strategy and mission of a company into smaller, actionable goals to create a smooth, efficient way of doing business.
Duties:
- Writing company policies
- Creating a hiring structure
- Overseeing vendor and business partner relationships
- Evaluating business practices
- Optimizing departmental structures
- Scaling operations alongside business growth
Qualifications:Because COOs manage inventory, supplies and staff, they should have extensive experience in their company’s field. Degrees in human resources and business administration can also make a candidate more competitive.
Read more:How to Hire a COO
Chief technology officer (CTO)
CTOs are responsible for the way a corporation uses technology. They oversee the tech infrastructure to improve efficiency in the way a company operates internally and externally. CTOs are also in charge of data security, protecting customer information and developing the company’s use of technology to keep up with customer needs.
Duties:
- Researching industry trends
- Evaluating software
- Directing IT department workflow
- Managing company websites
- Setting best practices for network security
- Training other departments to use new tech
Qualifications:CTOs need a strong background in IT management. They usually have a master’s degree or higher in computer science, software development or other tech majors. Many CTOs also have a business degree to help learn about how technology exists in business.
Frequently asked questions about corporate officers
What is the role of officers in a corporation?
Officers have a leadership role and manage a specific area of a company’s operations.
Is a corporate officer an employee?
Corporate officers are usually employees, but they don’thave to be.
What are the different officers of a corporation?
There are a variety of officers that you could have in your corporation. Some of the most common positions include a CEO, a CFO, a COO and a CTO.
How many officers should a corporation have?
The number of corporate officers you need depends on the size of the company. You could have as few as three for a small company or hundreds of officers across a national business.
