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Finance: What are CEOs, CFOs, and COOs? 41 Views
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What are CEOs, CFOs, and COOs? The “C” level executives in a corporation are the corporate officers responsible for the management decisions and processes of conducting the company’s business. The Chief Executive Officer (CEO) is akin to the captain of a ship. The CEO has the final authority on any corporate decisions and is responsible for the company’s overall success or failure. The Chief Financial Officer (CFO) is responsible for overseeing all of the company’s financial compliance with taxes, accounting, etc. as well as prudently managing the company’s funds to maximize value and profits for the shareholders. The Chief Operations Officer (COO) is akin to a ship’s XO; the COO implements all major decisions that are made by the CEO to whatever departments are required and coordinates whatever inter departmental cooperation may be necessary to execute the task(s) at hand.
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Transcript
- 00:00
Finance a la shmoop... what are CEOs, CFOs and COOs lots of C's you know sort of
- 00:11
like most of our high school report cards but it's a different story [Girl given a school report card with list of C grades]
- 00:15
all right so the C here for all of these stands for chief not the C in
- 00:20
big cheese and the O here for all of these stands for officer...
- 00:28
But sort of in that vein cop ish like when you are one of these
Full Transcript
- 00:33
officers it's your watch your beat your patrol and all that the delimiter here
- 00:40
is the middle letter so let's start at the top there E the E in CEO stands for
- 00:47
executive and distinctively the CEO is hired by the board of directors who in
- 00:53
turn is elected by the common shareholders the CEO is in charge of and [Woman CEO standing in her office]
- 01:00
well pretty much everything basically executing on the mandate which is to
- 01:04
make money over the long term for shareholders the CEO deals with both
- 01:09
internal operational and financial issues as well as dealing directly with
- 01:14
shareholders externally you know on the outside people ie those Wall Street folk [People working in Wall Street]
- 01:19
and she is generally you know where the buck stop...okay
- 01:23
moving on and that'll make some nice venison....Okay the CFO is
- 01:30
hired by the CEO and while on bad days the F might stand for something else
- 01:37
on a normal day the F stands for financial, the chief financial officer
- 01:42
deals with the dollar numbers the bean-counting [CFO counting beans]
- 01:45
from hiring and paying people usually via the head of human resources hired by
- 01:50
the CFO to tracking profitability of divisions which the CFO usually does in
- 01:55
concert with others in the company to you know dealing with Wall Street people [CFO holding a chicken wing]
- 01:59
as the wing man to the CEO at rubber chicken lunches
- 02:05
well if the company is
- 02:07
gonna raise debt to go buy a competitor or sell equity from insiders in a
- 02:13
secondary offering or use stock to acquire a tools company which will let
- 02:17
it operate more efficiently well all of that goes through the CFOs highly [A cluttered desk of beans]
- 02:22
cluttered desk all right so moving on then there's the COO and if you say
- 02:27
it all together it sounds like a bird but it's not the middle O there stands
- 02:33
for operating well other than in a company which just does surgery all day [a heart monitor in a surgery room]
- 02:38
the operating officer doesn't actually do surgery rather she operates the
- 02:44
company and usually that involves asking a thousand questions hopefully not all
- 02:49
at once like that Fed Ex guy who had too much caffeine are we getting the best
- 02:53
prices on the raw plastic we're ordering from war-torn New Zealand, are we making
- 02:58
enough selfie helmets, and is your dad still disappointed with you for getting
- 03:03
a C in accounting 101 back in high school
- 03:05
mm-hmm? just keeping it real there pal... well we can't answer the first two
- 03:09
and as for the last one well you're a COO oh you can probably afford a nice
- 03:14
shrink now so go work out your issues [COO laying on sofa talking with psychiatrist]
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