Difference Between President and CEO with Comparison Chart
In a company with subsidiaries, it would be unusual to have one person carry out the roles of both CEO and president, although it does happen at times, often with smaller businesses. In such instances, the small business is often owned by the same person who is also the CEO and president. Although, it is important to note that, they differ in their designations, as it brings power, authorities, roles and responsibilities with it. Take a read of the article carefully to know more about the two personalities. In small businesses, the CEO and the president are usually one and the same.
Further, he can advise and make the recommendation to the BOD on various matters. He is in charge of the overall operations, resources, and performance of the organization. The CEO acts as an interface between the board and the various levels of the company. CEO, an acronym for Chief Executive Officer, is the highest level officer or executive of the organization, who is subordinate only to the company’s Board of Directors (BOD). The BOD fixes the roles, responsibilities, powers and authorities of the CEO, on the basis of the legal structure of the organization.
CEO vs. President: Key Differences Between the Two Roles
The duties of the positions may overlap somewhat but primarily complement each other. President, as the name suggests is the person who presides over an organization. He is the senior-most officer of the organization after CEO, who is the head of the branch or division of the company. He is responsible for looking after the day to day business operations and logistics and proper implementation of the organization’s policies as per the directions of the top-level executives. Further, depending on the size and nature of the organization, the job responsibilities of a president may differ.
The CEO should also be someone who is an amazing public speaker who has a lot of experience covering different fields, and a charismatic person in general. A special skill set CEOs have is the ability to build loyal relationships with employees, higher-ranking officials, people in the industry, and the media. This includes coaching, motivating, and actively listening, as well as being able to take a leap of faith and believe in the best in people – all while preparing for the worst. When they do all this, the CEO should also let the company be in the main focus, and not themselves, in social media, public relations, and elsewhere. The CEO has to be able to create new opportunities for their company, predict market changes, and create plans on how to adapt to them and truly understand their stakeholders’ interests. Moreover, they need to make sure they create a long-lasting legacy for their brand.
Different types of company presidents
In addition, higher-level staffers like general managers usually report to the president or chief operating officer. While there are many different ways a corporate structure is set up, the basic corporation is headed by a board of directors. The CEO is the highest ranking officer with direct responsibility for the management of the company, and answers to difference between ceo and president a board of directors. Board members are elected by the shareholders, and may be either senior officers in the company or people independent of the company. The board is responsible for establishing corporate management policies and giving input on big-picture decisions. Quite often, but not always, the CEO also serves as chairman of the board of directors.
- At the top is the chief executive officer (CEO) and president – two key positions responsible for direction, decision-making, and daily operations.
- In small businesses, the president might also be the owner of the company.
- Sometimes, the CEO, President, and business owner job titles are embodied by the same individual.
- So to remove the confusion, this article will give you an in-depth CEO vs. president comparison.
The President typically reports to the CEO, who will be responsible for the strategic direction of the organization. Generally, the CEO has more authority as they are responsible for setting the long-term strategy, creating objectives, and providing overall management of the organization. The CEO is responsible for most strategic corporate decisions, whereas the President generally operates with a more limited scope.
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As such, it’s a good thing to understand the differences between CEO vs. President, especially if you are studying Business Administration. The CEO’s ultimate goal is to increase shareholder value by developing and executing long-term strategies. Short-term goals typically aren’t their main concern — they have the president and managers to deal with that. Essentially, management structure depends on the company – namely, its size and its needs. In most companies, a CEO and president are two of the topmost positions in the organizational structure.
Some boards prefer that the CEO remain independent and focused on their position. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. Koors said one of the advantages of having the same person occupy both roles is that it doesn’t create confusion about who’s really in charge. Kayes said people used to want to be called president, which he’s seen some shift away from. CEOs are also almost always members of the board, while presidents might not be, Koors said.
Many small business owners feel that having both a CEO and a president would be too many bosses at the top for the size of their company. Instead, they have one person who serves as both the CEO and the president of the company. If the owner is directly involved with the business, he would likely take this top role. The chief executive officer (CEO) is the Top Dog, the Head Honcho, the Number One in command. As the one at the top, the CEO sets the vision and mission for the company.
CEO vs. President: How they differ
Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. If you’re interested in becoming CEO, you need to know what the job entails. And if you’re interested in becoming President, you need to understand the CEO’s role in the company.
However, These roles could differ in expertise, focus, knowledge, vision, skill set, view, etc. Still, the ultimate purpose of President vs CEO roles is the organization’s success and growth. Despite being the top executive, the CEO has many people to answer to – particularly if they run a publicly traded company.
Chief Executive Officer (CEO) and President are two such key persons who hold the top positions in the organization and highly misconstrued. The division of power between a CEO vs president makes it possible for both the long- and short-term business goals to be considered. While a CEO is the face of a company and at the top of the hierarchy, a president is needed to oversee daily functions. Entering the business world means getting a sense of understanding corporate structure and hierarchy. While many businesses are shifting the landscape to lessen their focus on hierarchical structure, others hold true to the typical business structure.
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On top of that, presidents have to answer to CEOs and may even be fired by them if they don’t perform their jobs well enough. But while other board members’ responsibilities include only making big-picture policies, the CEO also has to make sure to implement them in daily operations. That means they need to interact with the president and other managers and relay the board’s decisions. But every organization is different — the structure of the executive leadership team at a company will vary, with the same person sometimes occupying both the title of CEO and president. The managing director may handle responsibilities similar to those of both the CEO and the president in a business structured as a corporation. Another name for a CEO is an executive director, which is a title commonly used with non-profit organizations.
If the CEO is the primary salesperson, the president is the chief manager. A CEO, the chief executive officer, is behind all high-level organizational decisions. They develop new strategies and policies, set effective business goals, and shape the company’s public image. The company’s shareholders elect the board of directors, whose purpose is to decide on the corporate management policies and big-picture issues. Usually, the board is composed of inside directors (senior officers in the company) and outside directors (people not employed in the company). The role of president – particularly its name – has seen a bit of evolution, at least in recent years.
Key Differences Between President and CEO
In the corporate world, presidents often hold the position of chief operating officer (COO). The COO, responsible for day-to-day operations, has vice presidents for different parts of the company reporting to them. They are responsible for making high-level decisions, communicating with the board of directors and the president. They oversee all business activities and create plans for the future of the company – mostly long-term goals revolving around expanding the company and creating more revenue.
Within some companies, there may not be a traditional “president” role; instead, there might be a COO whose sole responsibilities focus on day-to-day operations. Depending on the size of the company, instead of a president role, there may be a suite of vice presidents (VPs) in charge of various departments – there may be a VP of marketing or a VP of finance, for instance. Each VP would likely report to the CEO, but ultimately would be responsible for their respective divisions. A company of any size has various roles and positions within it, each helping to drive the business forward. At the top is the chief executive officer (CEO) and president – two key positions responsible for direction, decision-making, and daily operations. One of the key differences between the roles are the business responsibilities.
In other countries outside of the United States, the CEO may be called a Managing Director. Despite the fact that they are both concerned with the overall success of the organization, their approach to accomplish the business goals differ. A successful CEO has leadership skills that enable them to adapt to any situation.
And you see multiple combinations of those four titles across companies,” according to Jan Koors, senior managing director at Pearl Meyer, an executive compensation consulting firm. The president is responsible for more of the hands-on implementation of corporate goals into the actual workforce. The president is also required to report back to the board on company activities (and then the board reports to shareholders).
In large organizations, the president implements this vision and reports to the CEO. While the CEO faces outward and communicates primarily with the board of directors and industry leaders, the president is inward-facing and runs the day-to-day operations of a company. In smaller firms that lack human resources and finances, the same person may perform the President and the CEO roles.