At any given company, the CEO is the head executive whose job is to make major corporate decisions and decide on the company’s long-term goals. In other words, this role holds the highest level of authority within the enterprise and is often considered the face of the company. A key difference between CEOs and Presidents in larger businesses is their level of authority.
- The owner of the company is based on who has equity in the business, and may be a single owner, or in the case of multiple owners, considered a co-owner.
- Typically, the chairman of the board chairs board meetings and coordinates communication between the board and the company’s leadership.
- There are several scenarios where a company might decide to separate the CEO and president roles.
- That means they need to interact with the president and other managers and relay the board’s decisions.
- However, viewed from the inside, the jobs of CEO and president are distinct.
They are typically responsible for logistics and business operations and confirming the company’s policies are implemented effectively. Still, in some aspects, the CEO vs. president comparison shows there are similarities. For one, both are leadership positions that require a highly skilled and motivated person with years of experience.
CEOs have more authority and responsibility but also a higher salary, whereas presidents tend to be more involved in a company’s day-to-day operations. 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. There are several scenarios where a company might decide to separate the CEO and president roles. These could include rapid growth, increased complexity, or changes in the business environment that require focused attention on strategy and high-level decision-making.
In general, the chief executive officer (CEO) is considered the highest ranking officer in a company, and the president is second in charge. However, in corporate governance and structure, many permutations can take place, so the roles of both CEO and president may be different, ceo vs president depending on the company. Working together, the president and CEO can create a strong long-term plan for the company. While the CEO has the ultimate responsibility for the company’s performance and financial health, collaboration with the President and the CFO is necessary.
Part 9Long-term Planning and Strategy Development
Their main focus is maximizing profit rather than increasing shareholder value and ensuring that the company runs smoothly. The balance of power between these roles and the board can impact a company’s decision-making, shareholder value, and overall business strategy. 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. A CEO’s focus is on spotting opportunities and strategically setting the long-term goals for the organization.
CEO vs. President: An Overview
In such cases, the combined leader would have a more pronounced relationship with the board of directors and a greater influence on overall decision-making. However, as the business grows and expands, the need for a more formal corporate structure may arise. The CEO is the top executive in a business; the president is the second-highest executive, after the CEO. In some cases the second-highest executive in a business is called the chief operating officer (COO). The president or COO reports to the CEO and is typically hired by and can be dismissed by the CEO. A CEO receives reports from the president and sometimes other C-suite executives such as the chief financial officer.
CEO vs. President: What’s the Difference?
The CEO is not always the chair of the board, and the president is not always the COO. Though the Chief Executive Officer (CEO) and the president perform different roles, people often mix them up. That’s not the case, though — the two positions vastly differ in responsibilities, authority, and salary. So to remove the confusion, this article will give you an in-depth CEO vs. president comparison. Presidents usually oversee daily business operations and work closely with various departments.
As such, it’s a good thing to understand the differences between CEO vs. President, especially if you are studying Business Administration. In partnerships, a managing director often serves as the top executive. The managing director may handle responsibilities similar to those of both the CEO and the president in a business structured as a corporation.
The president is more concerned with conducting daily operations efficiently in support of those goals — in other words, the tactics. Another name for a CEO is an executive director, which is a title commonly used with non-profit organizations. The chairman of the board may sometimes take the role of CEO, but this is typical only if the person is heavily involved in the business.
Part 1Understanding Roles: President vs CEO
A president’s role is focused on managing day-to-day operations and executing the company’s vision set forth by the CEO and the board of directors. The president is typically the second-highest-ranking officer, reporting directly to the CEO. Another factor that determines the positions of company officers is corporate structure. 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.