Difference Between CEO And President.The terms “CEO” (Chief Executive Officer) and “President” are common titles within organizations, and their roles may vary depending on the company’s structure and industry.While there can be some overlap in responsibilities, here are five key differences between a CEO and a President:
5 Difference Between CEO And President
- Hierarchy and Authority:
- CEO: The CEO is usually the highest-ranking executive in the company and has ultimate authority and responsibility for the organization’s overall performance. They report directly to the board of directors and have the final say in major decisions.
- President: The President’s position may vary depending on the organization. In some companies, the President may be the highest-ranking executive, and in others, the President may report to the CEO and oversee specific departments or operations.
- Scope of Responsibilities:
- CEO: The CEO’s role is typically broader and more strategic, focusing on the long-term vision, corporate strategy, and growth opportunities for the entire organization. They are responsible for setting overall goals and ensuring that the company achieves its objectives.
- President: The President’s responsibilities often focus on the day-to-day operations of the company. They may be responsible for specific business units, divisions, or departments and oversee their functional areas, such as sales, marketing, or operations.
- Board of Directors Interaction:
- CEO: The CEO is a member of the board of directors and works closely with the board to align the company’s strategic direction with its shareholders’ interests.
- President: The President may or may not be a board member. If the President reports to the CEO, they may not directly interact with the board as frequently as the CEO does.
- External Representation:
- CEO: The CEO is the primary public face of the company and often represents it to the media, investors, and other stakeholders. They play a crucial role in maintaining the company’s image and reputation.
- President: While the President may also engage in external relations, their role is typically more focused on internal operations and management.
- Succession Planning:
- CEO: Succession planning for the CEO position is a critical board responsibility. The board is responsible for selecting, evaluating, and sometimes replacing the CEO.
- President: Succession planning for the President’s role may be overseen by the CEO or the board, depending on the company’s structure. The President’s position may also be seen as a potential pipeline for future CEOs.
It’s important to note that the roles of CEO and President can vary significantly from one organization to another, and some companies may even combine these roles into a single position, making the distinction less clear-cut.