This order represents the relative authority that the Chairman has (in agreement with the board he or she chairs) to hire and fire the CEO, and that the CEO also has power over the president. In addition, on a day-to-day basis, the chairman can make requests to the CEO (almost, but not quite give orders), and the CEO can direct the activities of the president. The positions of CEO, Chairman, and President may seem synonymous, however, there are usually several (two or three different people) what is the difference between a ceo and a president who have different positions in the company and different responsibilities. Sometimes the same person can hold several of these positions, as these are the top management positions in the company. 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. CEOs are typically in charge of all major business decisions, marketing, finance, human resources, and operations.
Participant Experience
This may be a capable individual who has the appropriate specialist knowledge, experience, and must have previously held managerial positions. The president takes office at the moment of his election to the post and leads until the removal of all assigned powers from him. On the pay scale, the CEO will be higher than the president, who in most cases will be higher than the chairman. This reflects the fact that most of the executive power and responsibility for running the company is in the hands of the CEO, who in turn delegates much of this power to the president. The managerial powers of the chairman are usually limited to the board and its functions.
- In general, the president role focuses more on internal management, while the CEO focuses on setting the overall direction for the company.
- However, it’s not uncommon for a President to participate in investor relations as well, as their knowledge of the company’s internal operations can provide valuable insights.
- The articles and research support materials available on this site are educational and are not intended to be investment or tax advice.
- Because their perspectives are different, presidents and CEOs operate with different goals in mind.
Duke Advanced Leadership Program in Health Sector (ALPH)
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. A president’s responsibilities may differ depending on the type of business or the size of the business. They are typically responsible for logistics and business operations and confirming the company’s policies are implemented effectively. A CEO is tasked with carrying out a company’s mission statement, managing its overall strategy, and ensuring its strong financial performance. A president is primarily responsible for the operational management of a company. In some corporations and organizations, the president is the leader of the company’s executive group.
How does the role of a company president differ from that of a CEO?
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. Typically, the CEO is expected to focus on the long-term goals and strategy of the business.
CEO vs President: Defining the Titles
The CEO is often a member of the board, and in some cases, serves as its chairperson. The key responsibilities of a CEO include setting the overall vision and mission of the company, developing strategy, and overseeing its implementation. They are responsible for making major decisions and ensuring long-term sustainable growth. The CEO also manages relationships with stakeholders such as investors, partners, and regulators, while fostering a strong company culture that attracts top talent. On the other hand, the President plays a more hands-on role in the day-to-day operations of the company. While the President is not the primary decision-maker when it comes to financial matters, their choices in overseeing departments and implementing policies can impact the company’s revenue.
Even about the board of directors, the CEO often makes a significant contribution, and sometimes an effective veto. The CEO is going to be the main leader of a corporation and is often the chair of the board of directors. In a corporation, the position of president is a very high level of management.
The CEO often sits as the Chairman of the Board — but that’s not always the case. All too often, these roles are used interchangeably — but it’s increasingly rare for a single person to serve as both CEO and President of a company. When it comes to positions that come with a great deal of responsibility and decision-making power, the CEO and President are often among the first that come to mind.
In such instances, the small business is often owned by the same person who is also the CEO and president. The President typically reports to the CEO, who will be responsible for the strategic direction of the organization. The President, on the other hand, generally has a more limited scope of authority. They may be responsible for specific areas such as marketing, finance, human resources, or operations. The CEO has a fiduciary responsibility to the shareholders to make decisions that are in the best interest of the company.
In short, the President’s role is to drive the execution of the strategies set by the CEO, making sure they are effective and contribute to the bottom line. Whereas the CEO is more focused on big-picture goals, the President of a company is responsible for handling the day-to-day operations of a company. These professionals often work closely alongside the CEO to ensure that long-term business strategies are being carried out, but Presidents tend to be more focused on short-term objectives. A CEO primarily focuses on seizing opportunities by strategically plotting the company’s long-range goals. A CEO is concerned with big-picture projects like building shareholder wealth, acquiring market share, and creating a robust company culture.
Usually, presidents work their way up the corporate ladder for years before they finally get this position. They are the highest-ranking executive and the face of the company in public and of course, internally. In some companies, usually smaller ones, the CEO and president are the same person. While in others, the CEO appoints multiple presidents for different verticals 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).
Kayes said people used to want to be called president, which he’s seen some shift away from. This is a big rule of thumb, but generally, you might see a 15% pay difference between the CEO and president, Koors said. Stay on top of all the latest updates on global perspectives, industry research, business practices, and more to push your career forward and grow your company. Learn machine learning online or improve your ML skills today with insights into career benefits, top programs, and steps to get started. Explore how businesses can leverage the top 10 artificial intelligence trends 2025 to be better prepared to maximize AI’s potential.