This might depend on the company, but generally speaking, a CEO usually ranks higher than managing directors. One of the biggest similarities between a CEO vs. managing director is that salaries tend to be similar. It is an extremely difficult level of work to complete and takes a certain kind of dedication and drive to do well. Doing either job poorly will have serious consequences for an entire company and will impact the lives of many people who work for the company.
Northwood BBA in Management Information Systems
Still, these skills come together to keep the company moving forward. A CEO is more focused on the big-picture vision, external communication with the public and board members, and the overall health and direction of the business. Some organizations may also prefer candidates with a master’s in Business ceo vs managing director Administration (MBA).
Master of Global Business Administration degrees specializing in finance or international relations can be advantageous for jobs with corporations. Some professionals with a background in consulting may have the broad operational knowledge necessary to work as a managing director. While both executive and managing directors hold significant decision making authority, their areas of competence and responsibility differ. A Managing Director reports to the CEO on updates and concerns on the day-to-day business of the company. They are responsible for the smooth functioning of daily processes and manage the managers and other department heads in a company. They are also tasked with liaising with the shareholders of the company.
Differences between a director vs. CEO
If the details of their job change, a managing director may become a CEO. Not every company will have a managing director, but they will have a CEO, so it may be a case of changing roles or duties. While similar, in that they oversee the performance of their company, there is a difference between a managing director and a CEO. Think of the CEO as being invested in the ‘big picture’, while the MD focuses on the individual areas that drive a company towards that wider vision. MDs are responsible for implementing the strategy and policies decided upon by the board and the CEO.
CEO Skills and Education Requirements
The CEO inspires employees and promotes change as the company’s ultimate leading executive and figurehead. The Chief Executive Officer (CEO) in an organisation is responsible for the strategic direction and financial viability of the business. A CEO isn’t so much involved with day-to-day operations but serves as a link between the board of directors and the company. Moreover, MDs often act as a bridge between the CEO and the rest of the organization.
In a public company they report performance to the board of directors, who ultimately make decisions to improve share price and keep shareholders happy. A CEO is also often a board member and typically always a shareholder. CEOs are not intricately involved with a nonprofit’s daily operations, unlike managing directors. CEOs also do not serve on the board of directors, although the board may allow the CEO to log into the board management system so they can collaborate more closely.
- As the face of the organization, CEOs often travel for the nonprofit, making calls on potential partners and interacting with clients and the public.
- A bachelor’s degree is required for this role, and a minimum of five years of managerial experience is preferred.
- Think of the CEO as being invested in the ‘big picture’, while the MD focuses on the individual areas that drive a company towards that wider vision.
- They may be formal delegations of authority that are far reaching and have broad repercussions.
It’s essential for managing directors to be able to think critically, make good decisions, and be good problem-solvers, as they often work in high-pressure situations. Managing directors must also be able to keep up the overall morale within the organization and represent the nonprofit’s intended culture in all they say and do. It is critical for managing directors to communicate regularly with the CEO and share their concerns before any situation gets out of hand. Overall, a CEO and the board craft a nonprofit’s strategy according to the organization’s mission and vision. The managing director is the individual who is responsible for bringing the plans to life and ensuring progress toward the nonprofit’s goals. In larger nonprofits, different employees serve in the CEO and managing director roles.