Every business requires a leader to move the company forward. The chief executive officer (CEO) sits at the top of the corporate ladder and significantly influences an organisation.
The scale of responsibilities shouldered by the CEO is often compensated with an impressive remuneration package, which includes a salary and may also offer performance bonuses, shares of stock and more.
Many companies in Malaysia are looking to hire these leadership-focused professionals. According to the Institute of Labour Market Information and Analysis, there were 19,266 job openings for managing director and chief executive roles in the fourth quarter of 2023.
While the path to becoming a CEO may vary, executives aiming for this highly coveted position are usually expected to have a solid combination of relevant formal education, industry experience and knowledge gained from previous roles, and proven performance in leadership positions.
CEOs typically have a bachelor’s degree in business. It’s also common for them to hold a Master of Business Administration (MBA) or other specialised postgraduate degrees relevant to their field of work.
This article explores key information on how to become a CEO and what it entails for aspiring leaders.
What is a CEO?
A CEO leads an organisation by overseeing its business direction, management and corporate strategy. They find ways to improve the company’s overall growth, performance and revenue.
As the top decision-makers, they work together with other leadership executives and department managers who manage different aspects of the company, such as the chief financial officer (CFO), chief operations officer (COO) and chief technology officer (CTO). The CEO may also report on the company’s performance to the board of directors, a group of individuals representing the interests of the organisation’s shareholders.
CEOs work in all sectors, such as business, technology, finance and more. They also work in companies of various sizes, from local start-ups to international corporations.
What does a CEO do?
CEO responsibilities may vary according to their industry, company size, culture, corporate structure and other factors. Some of their duties may include:
- supervising the overall direction of an organisation
- establishing the organisation’s vision, mission and corporate culture
- developing and implementing strategic business plans
- communicating with other leadership executives and stakeholders effectively
- participating in public relations and media events as the face of the company
- reporting to the board of directors about the company’s progress
4 steps to becoming a CEO in Malaysia
Becoming a CEO does not have a one-size-fits-all pathway. CEOs come from different educational backgrounds and specialisations in their respective fields. The guide below provides an example of the journey you could take to land a CEO position.
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Acquire an undergraduate degree
Work your way through undergraduate studies and obtain a bachelor’s degree in business, business administration, management or a related field. These courses are designed to equip you with essential knowledge and skills that will help you break into the business world.
A bachelor’s degree programme in this field typically takes three to four and a half years to complete. Some courses require you to do an internship, allowing you to gain hands-on industrial experience that complements your formal education.
Studying a business-related bachelor’s degree is also a good place to start for working professionals in other disciplines looking to change or advance in their career.
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Gain industrial experience
Start your career by working in entry-level roles in your field. Not only will you gain crucial industry-relevant knowledge, but you will also develop the technical and soft skills required to become a CEO. Take this time to familiarise yourself with the standard practices within your industry and build your network.
As you progress further into your career, you will start taking on mid-level positions. Your responsibilities may involve training new staff members, executing business strategies and managing budget plans. Learn and understand different management techniques by observing your seniors at work. This can help develop your leadership skills as you may adopt similar practices if you become a CEO.
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Obtain a postgraduate degree
Many graduates and professionals opt for an MBA to move up in their business career. The syllabus usually covers various areas such as economics, management, analytics, and more at a more advanced level than an undergraduate business programme to cultivate versatile leaders.
An MBA usually takes one to three years of study. You can study a generalised course or choose a specialisation, such as marketing, finance or global business.
A doctorate can also add value in industries where technical knowledge is crucial. You can typically finish a doctoral programme in three to four years.
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Advance into senior roles
Becoming a CEO requires extensive industrial experience and expertise in many areas of business.
The exact amount of time taken to get to the top of the corporate ladder varies depending on the CEO candidate’s career path. It’s not uncommon for CEOs to work their way up the corporate ladder for many years as they develop the skills and technical knowledge to succeed in the role. Your journey will likely involve taking on diverse roles and leadership positions.
You may work in a senior management role in your field before stepping up as a CEO. Your duties may include guiding supervisors, developing organisational goals and making high-level business decisions.
Working in various roles with the same company or across different companies and industries is important for budding CEOs. Being exposed to different work environments allows you to learn how different organisations operate and what strategies are used to grow their business. This knowledge can assist you when you’re in a CEO role as you will need to make vital business decisions for the company.
CEO salary in Malaysia
The average salary of a CEO depends on several factors.
Their remuneration can depend on the size of the company. CEOs of large organisations have more responsibilities as their companies likely have more employees and clients. These companies typically generate higher revenue compared to smaller organisations. Thus, CEOs of big companies tend to earn more than those in smaller ones.
Another crucial component affecting a CEO’s salary is the performance of the company. The board of directors may offer a bonus to the CEO if the company achieves outstanding financial results and surpasses competitors.
The industry a CEO works in also plays a role in determining their salary. Some industries offer higher CEO salaries than others, depending on their performance in the market. According to Equilar, the technology industry paid some of the highest CEO salaries in the world in 2023, with notable figures such as Hock E. Tan, Nikesh Arora and Tim Cook.
A CEO’s pay may also be influenced by external factors, such as the economy’s condition, changes in equity markets and unforeseen global events. For example, the recent pandemic affected many companies around the world. According to Impact International, 41 per cent of CEOs who sacrificed their income gave up 100 per cent of their base salary to support their businesses during the earlier part of COVID, including notable companies like Airbnb, Delta Airlines and Marriott. In Malaysia, The Edge reported that 16 CEOs from top publicly listed companies took a pay cut during the pandemic. During unpredictable times, CEOs may need to resort to this measure to keep their organisations afloat and avoid employee layoffs.
A well-crafted compensation package helps a CEO align themselves with an organisation’s overall business strategy. It can motivate them to drive better performance in achieving business goals.
What skills do CEOs need?
Soft skills
Leadership: You need to have strong leadership skills to lead and encourage employees to achieve shared goals. Some examples of excellent leadership skills that are highly valued in organisations are effective communication, taking initiative, critical thinking and conflict management.
Collaboration: This skill is necessary for a CEO as they need to work together with C-suite executives, managers, the board of directors and other stakeholders to ensure the company runs smoothly. A good collaborator builds healthy relationships with others which promotes workplace efficiency.
Adaptability: The business landscape can be unpredictable due to major environmental, technological and economic shifts around the world. A CEO must be able to adapt quickly in response to these changes and explore various business avenues to keep their company profitable and thriving.
Hard skills
Business management: Every CEO needs to have sound knowledge of running a business. It involves optimising resources and operational procedures effectively to improve organisational performance.
Strategic planning: A CEO is responsible for developing short and long-term business objectives for their organisation. They need to be strategic and consider the company’s capabilities and opportunities before making important business decisions.
Financial analysis: Financial literacy is an essential skill as a CEO needs to make well-informed decisions to boost the company’s financial health. This skill allows them to identify potential risks, make financial forecasts and understand business trends in the market.
CEO jobs in Malaysia
CEOs can be found working in diverse industries with varying responsibilities. These positions usually require years of experience and a solid educational background. Pursuing postgraduate studies may boost your chances of landing a CEO role.
Here are some distinctions between different fields.
| Industry | Responsibilities |
|---|---|
| Technology |
CEOs in this industry ensure that their companies are at the forefront of technological advancements. They focus on developing state-of-the-art products and services to provide the best value for customers. |
| Healthcare |
The CEO ensures that their healthcare facility is running efficiently. They must make sure that the facility abides by healthcare regulations and all employees have the necessary equipment and resources to provide high-quality patient care. |
| Hospitality |
Hotel CEOs implement strategic plans to improve revenue growth, customer satisfaction and operational efficiency. They strive to create a guest-centric culture so employees can provide exceptional services to all guests. |
| Banking |
A bank CEO manages the overall direction of a financial institution. They develop and execute strategic development plans, reduce financial risks and ensure compliance with banking regulations. |
| Automotive | The responsibilities of a CEO of an automotive company may include advising and authorising vital dealership processes, reviewing the dealership’s financial structures, and leading negotiations related to mergers, joint ventures and the sales of major assets. |
Steer the future of your company
The path to becoming a CEO requires time, hard work and dedication. However, you can enjoy attractive benefits as the top decision-maker while working towards achieving organisational success. One way to embark on your journey today is by studying an MBA, which can help you hone essential skills and knowledge to become a business leader. You can discover various MBA programmes offered by leading institutions in Malaysia here.