Top Executives : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics

Summary

Top executives are the highest level of management at an organization and often work closely with other executives and managers.

Quick Facts: Top Executives
2016 Median Pay	$103,950 per year $49.97 per hour
Typical Entry-Level Education	Bachelor's degree
Work Experience in a Related Occupation	5 years or more
On-the-job Training	None
Number of Jobs, 2014	2,467,500
Job Outlook, 2014-24	6% (As fast as average)
Employment Change, 2014-24	147,000

What Top Executives Do

Top executives devise strategies and policies to ensure that an organization meets its goals. They plan, direct, and coordinate operational activities of companies and organizations.

Top executives work in nearly every industry. They work for large and small businesses, ranging from companies in which they are the only employee to firms with thousands of employees. Top executives often work many hours, including evenings and weekends. In 2014, about half worked more than 40 hours per week. Travel is common, particularly for chief executives.

How to Become a Top Executive

Although education and training requirements vary widely by position and industry, many top executives have at least a bachelor’s degree and a considerable amount of work experience.

Pay

The median annual wage for general and operations managers was $99,310 in May 2016.

The median annual wage for chief executives was $181,210 in May 2016.

Job Outlook

Employment of top executives is projected to grow 6 percent from 2014 to 2024, about as fast as the average for all occupations. Employment growth will vary by industry and is largely dependent on the rate of industry growth. Top executives are expected to face very strong competition for jobs.

State & Area Data

Explore resources for employment and wages by state and area for top executives.

Similar Occupations

Compare the job duties, education, job growth, and pay of top executives with similar occupations.

More Information, Including Links to O*NET

Learn more about top executives by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Top Executives Do About this section

Top executives often report to a board of trustees.

Top executives devise strategies and policies to ensure that an organization meets its goals. They plan, direct, and coordinate operational activities of companies and organizations.

Duties

Top executives typically do the following:

Establish and carry out departmental or organizational goals, policies, and procedures
Direct and oversee an organization’s financial and budgetary activities
Manage general activities related to making products and providing services
Consult with other executives, staff, and board members about general operations
Negotiate or approve contracts and agreements
Appoint department heads and managers
Analyze financial statements, sales reports, and other performance indicators
Identify places to cut costs and to improve performance, policies, and programs

The responsibilities of top executives largely depend on an organization’s size. For example, an owner or manager of a small organization, such as an independent retail store, often is responsible for purchasing, hiring, training, quality control, and day-to-day supervisory duties. In large organizations, however, top executives typically focus more on formulating policies and strategic planning, while general and operations managers direct day-to-day operations.

The following are examples of types of top executives working in the private sector:

Chief executive officers (CEOs), who are also known by titles such as executive director, managing director, or president, provide overall direction for companies and organizations. CEOs manage company operations, formulate and implement policies, and ensure goals are met. They collaborate with and direct the work of other top executives and typically report to a board of directors.

Chief operating officers (COOs) oversee other executives who direct the activities of various departments, such as human resources and sales. They also carry out the organization’s guidelines on a day-to-day basis.

General and operations managers oversee operations that are too diverse and general to be classified into one area of management or administration. Responsibilities may include formulating policies, managing daily operations, and planning the use of materials and human resources. They make staff schedules, assign work, and ensure that projects are completed. In some organizations, the tasks of chief executive officers may overlap with those of general and operations managers.

The following are examples of types of top executives working in the public sector:

Mayors, along with governors, city managers, and county administrators, are chief executive officers of governments. They typically oversee budgets, programs, and the use of resources. Mayors and governors must be elected to office, whereas managers and administrators are typically appointed.

Most educational systems, regardless of whether they are public or private school systems, also employ executive officers. The following are examples of top executives working in the elementary, secondary, and postsecondary educational school systems:

School superintendents and college or university presidents are chief executive officers of school districts and postsecondary schools. They manage issues such as student achievement, budgets and resources, general operations, and relations with government agencies and other stakeholders.

Work Environment About this section

Top executives meet with and direct lower level managers.

Top executives held about 2.5 million jobs in 2014.

Top executives work in nearly every industry. They work for both large and small businesses, ranging from companies in which they are the sole employee to firms with thousands of employees.

Top executives of large organizations typically have large offices and numerous support staff. However, the work of top executives is often stressful because they are under intense pressure to succeed. Executives in charge of poorly performing organizations or departments may find their jobs in jeopardy.

Top executives frequently travel to attend meetings and conferences or to visit their company’s local, regional, national, and international offices.

Work Schedules

Top executives often work many hours, including evenings and weekends. In 2014, about half worked more than 40 hours per week.

How to Become a Top Executive About this section

General and operations managers coordinate the work of their staff.

Although education and training requirements vary widely by position and industry, many top executives have at least a bachelor’s degree and a considerable amount of work experience.

Education

Many top executives have a bachelor’s or master’s degree in business administration or in an area related to their field of work. Top executives in the public sector often have a degree in business administration, public administration, law, or the liberal arts. Top executives of large corporations often have a master’s degree in business administration (MBA).

College presidents and school superintendents are typically required to have a master’s degree, although a doctorate is often preferred.

Although many mayors, governors, or other public sector executives have at least a bachelor’s degree, these positions typically do not have any specific education requirements.

Work Experience in a Related Occupation

Many top executives advance within their own firm, moving up from lower level managerial or supervisory positions. However, other companies may prefer to hire qualified candidates from outside their organization. Top executives who are promoted from lower level positions may be able to substitute experience for education to move up in the company. For example, in industries such as retail trade or transportation, workers without a college degree may work their way up to higher levels within the company to become executives or general managers.

Chief executives typically need extensive managerial experience. Executives are also expected to have experience in the organization’s area of specialty. Most general and operations managers hired from outside an organization need lower level supervisory or management experience in a related field.

Some general managers advance to higher level managerial or executive positions. Company training programs, executive development programs, and certification can often benefit managers or executives hoping to advance.

Important Qualities

Communication skills. Top executives must be able to communicate clearly and persuasively. They must effectively discuss issues and negotiate with others, direct subordinates, and explain their policies and decisions to those within and outside the organization.

Decisionmaking skills. Top executives need decisionmaking skills when setting policies and managing an organization. They must assess different options and choose the best course of action, often daily.

Leadership skills. Top executives must be able to lead an organization successfully by coordinating policies, people, and resources.

Management skills. Top executives must shape and direct the operations of an organization. For example, they must manage business plans, employees, and budgets.

Problem-solving skills. Top executives need to identify and resolve issues within an organization. They must be able to recognize shortcomings and effectively carry out solutions.

Time-management skills. Top executives do many tasks at the same time, typically under their own direction, to ensure that their work gets done and that they meet their goals.

Pay About this section

Top Executives

Median annual wages, May 2016

Chief executives: $181,210
Top executives: $103,950
Management occupations: $100,790
General and operations managers: $99,310
Total, all occupations: $37,040

The median annual wage for chief executives was $181,210 in May 2016. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $69,780, and the highest 10 percent earned more than $208,000.

The median annual wage for general and operations managers was $99,310 in May 2016. The lowest 10 percent earned less than $44,290, and the highest 10 percent earned more than $208,000.

Because the responsibilities of general and operations managers vary significantly among industries, earnings also tend to vary considerably.

Top executives are among the highest paid workers in the United States. However, salary levels can vary substantially. For example, a top manager in a large corporation can earn significantly more than the mayor of a small town.

In addition to salaries, total compensation for corporate executives often includes stock options and other performance bonuses. They also may enjoy benefits, such as access to expense allowances, use of company-owned aircraft and cars, club memberships, and company-paid insurance premiums. Nonprofit and government executives usually receive fewer of these types of benefits.

Top executives often work many hours, including evenings and weekends. In 2014, about half worked more than 40 hours per week.

Job Outlook About this section

Top Executives

Percent change in employment, projected 2014-24

General and operations managers: 7%
Total, all occupations: 7%
Top executives: 6%
Management occupations: 6%
Chief executives: -1%

Employment of top executives is projected to grow 6 percent from 2014 to 2024, about as fast as the average for all occupations. Employment growth will vary widely by industry and is largely dependent on the rate of industry growth.

Top executives are essential for running companies and organizations and their work is central to the success of a company.

Generally, employment growth will be driven by the formation of new organizations and expansion of existing ones, which will require more managers and executives to direct these operations.

However, the rate of new firm creation has slowed over the past few years, with economic activity and employment becoming increasingly concentrated in larger, more mature companies. Younger Americans who came of age during the Great Recession are characterized by an aversion to financial risk. As they reach the peak age of entrepreneurship over the next decade, new firm creation may continue to slow. This may negatively affect the demand for chief executives.

Job Prospects

Top executives are expected to face very strong competition for jobs. The high pay and prestige associated with these positions attract many qualified applicants.

For chief executives, those with an advanced degree and extensive managerial experience will have the best job prospects.

For general and operations managers, education requirements vary by industry, but candidates who can demonstrate strong leadership abilities and experience getting positive results will have better job opportunities.

Employment projections data for top executives, 2014-24
Occupational Title	SOC Code	Employment, 2014	Projected Employment, 2024	Change, 2014-24		Employment by Industry
Occupational Title	SOC Code	Employment, 2014	Projected Employment, 2024	Percent	Numeric	Employment by Industry
SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program
Top executives	—	2,525,900	2,672,500	6	146,600	—
Chief executives	11-1011	343,400	339,400	-1	-4,100	[XLSX]
General and operations managers	11-1021	2,124,100	2,275,200	7	151,100	[XLSX]

State & Area Data About this section

Occupational Employment Statistics (OES)

The Occupational Employment Statistics (OES) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OES data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

Career InfoNet

America’s Career InfoNet includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of top executives.

Occupation	Job Duties	ENTRY-LEVEL EDUCATION	2016 MEDIAN PAY
Administrative Services Managers	Administrative services managers plan, direct, and coordinate supportive services of an organization. Their specific responsibilities vary, but administrative service managers typically maintain facilities and supervise activities that include recordkeeping, mail distribution, and office upkeep.	Bachelor's degree	$90,050
Advertising, Promotions, and Marketing Managers	Advertising, promotions, and marketing managers plan programs to generate interest in products or services. They work with art directors, sales agents, and financial staff members.	Bachelor's degree	$127,560
Architectural and Engineering Managers	Architectural and engineering managers plan, direct, and coordinate activities in architectural and engineering companies.	Bachelor's degree	$134,730
Computer and Information Systems Managers	Computer and information systems managers, often called information technology (IT) managers or IT project managers, plan, coordinate, and direct computer-related activities in an organization. They help determine the information technology goals of an organization and are responsible for implementing computer systems to meet those goals.	Bachelor's degree	$135,800
Construction Managers	Construction managers plan, coordinate, budget, and supervise construction projects from start to finish.	Bachelor's degree	$89,300
Financial Managers	Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.	Bachelor's degree	$121,750
Human Resources Managers	Human resources managers plan, direct, and coordinate the administrative functions of an organization. They oversee the recruiting, interviewing, and hiring of new staff; consult with top executives on strategic planning; and serve as a link between an organization’s management and its employees.	Bachelor's degree	$106,910
Industrial Production Managers	Industrial production managers oversee the daily operations of manufacturing and related plants. They coordinate, plan, and direct the activities used to create a wide range of goods, such as cars, computer equipment, or paper products.	Bachelor's degree	$97,140
Medical and Health Services Managers	Medical and health services managers, also called healthcare executives or healthcare administrators, plan, direct, and coordinate medical and health services. They might manage an entire facility, a specific clinical area or department, or a medical practice for a group of physicians. Medical and health services managers must direct changes that conform to changes in healthcare laws, regulations, and technology.	Bachelor's degree	$96,540
Sales Managers	Sales managers direct organizations' sales teams. They set sales goals, analyze data, and develop training programs for organizations’ sales representatives.	Bachelor's degree	$117,960