Still, the mere existence of these two corporate titles indicates that there will be a substantial difference in their roles. Both reports to the Board of Directors. More recently, the organizations have started identifying the significance of the two roles and have incorporated the same into their structure. Chief Executive Officer: A senior executive of the management of a company who takes important decisions related to a company.
Both Chief Executive Officer vs Managing Director is a topmost and important position in the organization. Let us discuss some of the major differences :. There are a few pointers that differentiate one from another:. Responsible for the overall performance of the Company As the title suggests, MD involves in managing day to day operations as well as advise the Board in effective decision making.
Looks after the performance of individual divisions collectively Decision making Works on decisions made by the Board of Directors Helps the Board in making strategies and policies Public face CEO represents the company publicly in case of any corporate event.
On the other hand, MD mainly represents the firm internally by leading and motivating employees of the company and by setting up examples. CEO and MD as a separate role Due to the increasing complexities in the current business environment that have increased the importance of having two different positions. The concept of separate MD and CEO started from the US-based firms, and it got acceptance with the UK and the European-based entities due to increased difficulties in the corporate environment.
Even if law permit both, it is not practially possible to have both. You are commenting using your WordPress. You are commenting using your Google account.
You are commenting using your Twitter account. You are commenting using your Facebook account. Notify me of new comments via email. Notify me of new posts via email. This site uses Akismet to reduce spam. Learn how your comment data is processed. This blog is a knowledge sharing initiative. Views expressed here is of writer; not of the organization s he is working with. Email Address:. Follow AishMGhrana. RSS - Posts. Skip to content. Firstly, basic observations. All three shall drive their power from the Board of Directors and report to the Board only.
Be first among your friends to share this post. Share on Tumblr. Like this: Like Loading Bookmark the permalink. Aishwarya Mohan Gahrana November 23, at am Reply. In either instance, a CEO faces constant pressure to help his firm achieve its long-term financial goals, or risk jeopardizing his future. Company Presidents At governmental agencies or nonprofit corporations, a corporate president may be more directly involved than CEOs in day-to-day management activities.
At the Corporation for Public Broadcasting, for example, the president must report all significant activities and undertakings to the board of directors.
0コメント