CEO and President are both leadership job titles in organizations. They are both members of the executive management team and make important company decisions. So what marks the difference between CEO vs. President? Contact online >>
CEO and President are both leadership job titles in organizations. They are both members of the executive management team and make important company decisions. So what marks the difference between CEO vs. President?
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.
A President manages micro-level decisions and day-to-day operations of an organization. They supervise other executives and managers and ensure that company departments function properly. Sometimes, the President is also the COO (Chief Operations Officer).
Yes, the CEO is the top-ranking executive in a business and the President is right below the CEO. In some organizations, one person may hold both titles. The type of company and organizational structure plays a significant role here. For example, in small businesses, the business owner is often the CEO, President, and Managing Director all at once.
When a company scales up, the CEO, President, and other C-suite level roles usually become separate as each position''s duties are increased and demand more time and dedication.
CEO: Highest-ranking executive in an organization.
President: Second executive in hierarchy, right below the CEO.
President: They report to the CEO and the Board of Directors and sometimes, they are board members.
CEO: Their focus and responsibilities are mostly outward-facing. For example, they meet shareholders and investors and source new opportunities to keep the company profitable. They may also serve as the public ‘face’ of the company.
President: Their focus is more within the company. They implement strategic plans agreed by the CEO and board members and ensure all policies are followed by the employees.
CEO: They shape the company''s vision and organizational culture.
President: They help maintain organizational culture and facilitate the company''s vision.
CEO: They mostly collaborate with shareholders, board members, and other executives.
President: They usually work with executives and managers and build a positive relationship with employees.
Does that clarify the difference between CEO and President? Visit our library of HR Terms to learn similar definitions.
In corporate management structures, the CEO is the highest ranking officer and visionary, while the president is more responsible for day-to-day management decisions and strategies. In simple terms, the CEO makes a promise to the company, setting a long-term vision. The president of the company keeps that promise and manages the company to make that vision a reality.
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 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. The president is second in command after the CEO (or first in command if there is no CEO), and also usually fills the role of the Chief Operating Officer (COO).
The CEO of a company is responsible for the overall strategy, vision, and financial well-being of a company. In a publicly traded company, the CEO often also acts as chairman of the board, as he/she is responsible for integrating the board''s decisions into the operations of the company. John Chambers, Chairman and CEO of networking giant Cisco, speaks on the roles of a CEO in this video:
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 smaller corporations, the CEO may also fill the role of president.
In addition to company-facing responsibilities, the CEO also often acts as the head salesman, and is responsible for making pitches to high-profile customers, making sales presentations, and announcing new products or services. The CEO is the public face of the company, and may interact with local communities through community events, chamber of commerce meetings, etc.
The president, in the quest to implement the vision and goals established by the board and CEO, must use effective metrics and measure the performance and efficiency of employees. Presidents also tend to play a larger role in human resources decisions, and managing detailed financials like travel reimbursements and company compliance with laws and regulations.
Particularly in American corporations, CEOs are often extremely powerful and entrenched in their position. As a growing private company transitions to a corporate structure, it is common for the owner to taken on the role of CEO, play a large part in establishing a board of directors, and to establish him- or herself as chairman of the board. In the U.K. and much of Europe, codes of best practice strongly discourage this setup. CEOs usually have the power to make binding decisions for the company without prior approval from the board of directors, and CEOs may fire or hire for any position directly in the company.
Presidents, on the other hand, generally act more as top-tier managers with power over personnel, but lack the power to single-handedly alter the course of the company or manage other executive officers. This is, however, a generalization, and power dynamics vary among different corporations.
Presidential roles vary according to firms and corporate structures. Below are some examples of the roles in presidential titles of reputed firms:
Though the Chief Executive Officer (CEO) and the president perform different roles, people often mix them up. Many even believe that these two titles mean the same thing. 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.
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.
But with such great authority comes great responsibility. The CEO vs. President must also be ready to manage and oversee various operations and resources and act as a liaison between the corporation and its board of directors. The CEO is often a member of the board and may even be its chair.
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 CEO is often a board member too and may even be its chair.
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.
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. Small businesses are the exception to this rule, though. There, the CEO might have to take other, more hands-on roles as well.
But here is what CEO''s responsibilities usually entail:
Because the role is quite demanding, people who want to become CEOs need excellent communication and management skills, extensive business experience, and the ability to solve problems and make decisions. In most cases, though, CEOs are also the founders of the company. Otherwise, climbing that ladder might be more challenging.
It''s difficult to say exactly how much a CEO is paid — after all, it largely depends on their company''s size. For instance, CEOs of large global corporations earn millions of dollars a year. On the other hand, those in charge of small businesses may struggle to make it to a hundred thousand.
Still, on average, they earn around $156,473 a year, which is by no means a negligible sum. With bonuses and commissions, they can usually get to over $200,000 a year, or even more.
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