CEO vs President: Differences in Authority, Salary, Responsibilities and More

While internal eyes may be on the president, in terms of how they’re leading the business, their responsibilities aren’t nearly as public-facing as a CEO’s. Additionally, the president doesn’t typically work in close liaison with the company’s board of directors. They’re part of the C-suite of executives, which might also include the chief operating officer (COO), the chief financial officer (CFO), and chief technology officer (CTO). But not all companies fill all C-suite roles; these positions tend to be more common in the corporate world than in small, private businesses.

Since the board of directors oversees company activities and keeps shareholder interest top-of-mind, the CEO will need to consider the board’s advice and act on it occasionally. Private companies – unlike public ones – aren’t legally required to have a board, but they can choose to select a board of directors to help guide decisions. 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). 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.

Is CEO Higher Than President?

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. In smaller organizations, such as nongovernmental organizations and academic institutions, both CEO and president may be the same person. A CEO might also have a seat at the board table, but this is sometimes seen as a conflict of interest.

The CEO is generally paid significantly more than the President, who is typically compensated with a salary rather than an annual stipend. At Hunt Club, we understand how much is at stake when you’re looking to hire a new CEO or President. With our pool of more than eight million professional connections and our proprietary networking mapping technology, we have the resources and expertise needed to find your next CEO or President. A Vice President, Regional Manager, or even a current COO may be considered for a President opening.

Relation to board

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. Despite being the top executive, the CEO has many people to answer to – particularly if they run a publicly traded company. In a public company, the CEO is elected by a company’s board of directors and serves as the main point of contact between the board and the business.

• With this in mind, be sure to choose a recruiting firm that will work closely with your company’s board and keep everybody informed throughout the process.
• 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.
• If these avenues aren’t practical for your company, then outside recruitment may be your best bet.
• For example, Jon R. Moeller is both president and CEO at Proctor and Gamble.

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. Ultimately, CEOs are more focused on increasing the value of the company for shareholders with a long-term vision rather than meeting short-term goals. Another name for a CEO is an executive director, which is a title commonly used with non-profit organizations.

Similar Job Titles

Some boards prefer that the CEO remain independent and focused on their position. The annual salary a CEO gets can vary greatly depending on their location, experience, and skill level. According to ZipRecruiter, the average pay for a CEO in the United States in 2023 is $148,441 annually. It is more usual for a company to have a president but no CEO than for a company to have a CEO but no president.

• Short-term goals typically aren’t their main concern — they have the president and managers to deal with that.
• This is, however, a generalization, and power dynamics vary among different corporations.
• So to remove the confusion, this article will give you an in-depth CEO vs. president comparison.
• In some cases, the second-highest level executive in a business is called the Chief Operating Officer (COO) instead of the President.

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). While the CEO manages the https://accounting-services.net/ceo-vs-president-what-s-the-difference/ overall direction of the company, the president focuses on the day-to-day operations. In companies with both a CEO and a president, the president reports to the CEO and is typically second in command. In such a case, the president’s role varies from that of the CEO, particularly in the sense that they’re generally less focused on long-term strategy and more focused on daily operations.

Other Roles

While the CEO and the president may appear to be nearly identical, in many cases their duties and powers are significantly different. CEOs are more strategic and concerned with broader measures of success, and they serve at the pleasure of the board. Presidents, or the chief operating officers, concern themselves with day-to-day execution of the CEO’s strategies, and they answer to the CEO. Because a CEO is the highest-ranking position in a company and involves a lot of critical decision-making, the qualifications for this type of role are high. The exact requirements for a CEO may vary from one company to the next based on things like the size of the company, its long-term goals, and the needs of its stakeholders. The day-to-day work of a CEO can vary from one company to the next, but in general, CEOs serve as head decision-makers of a company.

The president is also required to report back to the board on company activities (and then the board reports to shareholders). 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.

Who has the most authority between a President and a CEO?

In many ways, the CEO is a jack of all trades — making critical business decisions that keep the company moving toward its long-term goals and objectives. 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. If a board feels that a CEO is not performing at acceptable levels, they can fire the CEO and replace them with a new one.

The owner (who might also happen to be a CEO and President), certainly has a vested and personal interest in seeing his or her company succeed, and will take on extra responsibilities if resources are limited. While the CEO is responsible for overall company strategy and execution, the second-in-command President’s job is to ensure the company’s vision is translated into the day-to-day, nitty-gritty operations. The CEO is often the public face of the company, interacting with the public through community events, chamber of commerce meetings, and more. They may also be the company’s top salesperson, responsible for making high-level sales pitches and announcing the business’s products and services that’ll elevate the company as a whole. 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.