Chief Investment Officer vs CEO: What’s the Difference?

Did you know there are nearly 200,000 chief executive officers found in the United States? Now when most people think of C-Suite positions they tend to picture these CEOs.

However, the reality is that there are multiple important business positions when it comes to a company’s management team. One of these other positions includes the chief investment officer (or CIO).

So what’s the difference between a chief investment officer vs CEO? And how do you find the right one for your company?

If you want to discover the answers to these questions and more, you’re in the perfect place. This guide will teach you everything you need to know about these important C-Suite jobs.

What Is a Chief Investment Officer?

The chief investment officer is the head individual at a company that’s in charge of running and managing any investments the organization might have. The CIO will need to think of strategies for maximizing returns from these investments.

At the same time, they’ll also need to protect the company by minimizing any risks caused by these investments.

Being a CIO requires a profound knowledge of market trends. That way, they can make decisions about the bonds, stocks, and other investment instruments the company has more effectively.

What Is a Chief Executive Officer?

The chief executive officer is at the top of the corporate ladder when it comes to a company. A CEO is also in charge of maximizing a company’s value. However, they do this in a different way than a CIO.

Instead of investments, they help a company by creating long-term goals for its workers. Then, they implement strategies to make these goals a reality. These crucial decisions will often result in the success or failure of the company.

As such, a chief executive officer needs to shoulder this responsibility. That’s part of the reason why it’s often the highest-paid position at a company.

Differences Between a Chief Investment Officer vs CEO

We now know some of the broad strokes differences between a CIO and a CEO. In this section, we’ll go into some of the specifics of what separates their duties, requirements, and skills.

That way, you have a better understanding of the different business roles.

Job Duties

CIOs are more concerned with the financial aspects of the company in their job duties. Specifically, they need to work with the CFO to determine how much of their finances can go toward investments.

Then, they need to analyze market trends to ensure that those investments are maximized. Financial success is also important to the CEO.

However, most of the time, their job duties are more concerned with each department of the company.

They’ll implement strategies within each department to make sure that everyone understands their role in contributing toward the company’s success.

Job Requirements

As we mentioned before, knowledge of market trends is essential for a CIO position. Now sometimes, this knowledge can be gained without a formal education.

However, most companies still want to hire a CIO who has at least a bachelor’s degree in a relevant field. Finance, economics, and accounting are some of the usual culprits.

A master’s degree can also help them stand apart from other candidates. Similarly, most CEOs hold a bachelor’s degree in business administration or finance. Many also have MBAs.

Some individuals may be hired for the role of CEO, or assign themselves the position when they start a company. Others might start at the company in an entry-level position, then work their way up to CEO.

Job Skills

Strategic planning is the overlap when it comes to job skills for chief investment officers and CEOs. A CIO needs to apply these planning skills to the way they approach investment opportunities.

CEOs, on the other hand, need to apply this planning to the overall direction that the company is going in. As you can guess, CIOs need specialized skills when it comes to investments and market knowledge.

CEOs need to be a jack of all trades when it comes to their job skills. Knowledge of management is essential, but so are skills in finance and marketing.

How to Find CIOs and CEOs for Your Company

It can be a challenge for a company to find qualified C-suite management. Why? Well for one thing the candidate pool is often small. The overlap of people who are qualified for the role and understand the company’s present and future challenges is often minuscule.

If you’re looking for CIOs, CEOs, or any C-Suite position for your company, the most important thing is to take things slow. Make sure you put a lot of time and energy into a job description.

And don’t rush the hiring process. Remember that one small mistake in the hiring process can often cost your company millions of dollars. In some cases, you can also look for outside options.

For example, Dalma Capital recently launched an investment management platform that allows you to outsource the role of chief investment officer to them.

By relying on experts with a proven track record, you don’t need to gamble on individual CIOs when it comes to your company’s investments.

Appreciate Learning About These Positions? Keep Exploring to Learn More

We hope this guide helped you learn more about the difference between a chief investment officer vs CEO. As you can see, there is some overlap between a CEO’s and CIO’s responsibilities.

However, for the most part, CIOs are concerned with financial investments within the company, while CEOs concern themselves with overseeing the entirety of the company.

Want to learn more about these types of business jobs and careers? We’ve got plenty of similar topics on our website that you should continue to explore now.

Related Posts