CEO vs. President: How they differ
A CEO (Chief Executive Officer) is the top executive, responsible for high-level decisions and setting company vision. The President oversees day-to-day operations, supervises managers, and ensures departments function properly, facilitating the company’s vision and culture.
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?
Contents:
- What is a CEO of a company?
- What is the president of a company?
- Is CEO higher than President?
- Let’s look at a head-to-head comparison of CEO vs. President:
What is a CEO of a company?
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.
What is the president of a company?
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).
Is CEO higher than President?
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.
Let’s look at a head-to-head comparison of CEO vs. President:
Rank
CEO: Highest-ranking executive in an organization.
President: Second executive in hierarchy, right below the CEO.
Reports
CEO: They report to the board of directors, with most CEOs being members and sometimes chair of the board.
President: They report to the CEO and the Board of Directors and sometimes, they are board members.
Focus
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.
Vision
CEO: They shape the company’s vision and organizational culture.
President: They help maintain organizational culture and facilitate the company’s vision.
Relationships
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.
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Does that clarify the difference between CEO and President? Visit our library of HR Terms to learn similar definitions.
Frequently asked questions
- What is the primary role of a CEO?
- The CEO is the top executive, responsible for making high-level decisions, shaping the company's vision, and setting strategic goals.
- How does the role of a President differ from a CEO?
- While the CEO focuses on overarching company strategy, the President manages day-to-day operations, supervises managers, and ensures that company departments function effectively.
- Can one person hold both the CEO and President titles?
- Yes, in some companies, especially smaller ones, one individual might hold both titles, combining the responsibilities of both roles.
- Who reports directly to the CEO?
- Typically, senior executives and sometimes the President report directly to the CEO, depending on the company's organizational structure.
- Is the CEO always the founder of the company?
- Not necessarily. While many founders do become CEOs, as companies grow, they might hire an external CEO with more experience in scaling businesses.