How is the CEO of a major corporation chosen?

Can sometimes be the owner. When a corp forms a Board of Directors, the owner usually falls into the CEO role. If the owner retires, then it can be passed on to a child often enough or a CEO will be appointed or hired by the Board of Directors. Sometimes this person may come from the Board itself or someone else that has worked their way up through the company, but can also be hired from outside. This usually happens when a company wants a new perspective or if they are in financial difficulty. They will bring in an outsider, often known for helping floundering businesses get back on track, etc.

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