Difference between President and CEO

Main difference

The main difference between the president and the CEO is that the president carries out all the internal operations of the organization. On the contrary, the CEO mainly contributes to forming a bridge between the internal and external environment of organizations.

President vs. CEO

The president is considered the second in charge after the CEO and is directly below the CEO, while the CEO is known to be at the highest rank in the organization. The president is in charge of turning the vision into reality through effective performance and trying to keep the promise; on the other hand, the CEO is the person who makes the promise to the company and sets the long-term vision of the organization.

The president plays the main role in financial management and the effective implementation of the strategy; Rather, the CEO plays a role in managing operations and forming strategies. The president generally reports directly to the CEO and the Board of Directors; on the other hand, the CEO reports directly to the Board of Directors.

Some other considered responsibilities of a president is that he can work as director of operations; On the other hand, some other responsibilities of the CEO other than the main role of it is that the CEO can also act as chairman and chairman of the board of directors. The president’s subordinates are the vice president and senior management; on the contrary, the subordinates of the CEO are president, CSO, CFO and CAO.

The decisions of the president are involved in the decisions at the micro level and more involved with the employees; On the other hand, the CEO makes decisions that are involved in the decisions at the macro level. On the board, the chairman may or may not have a seat, while the chief executive officer has a permanent seat on the board.

The main key tasks of a president include the implementation of objectives, the care of sales, marketing strategies, development and research. The president contains some other key tasks like designing, framing and shaping the future of the business and includes optimizing the processes. On the contrary, the CEO confirms that the board must contain all the information, examine the environment for opportunities and growth predictions. The CEO also sets the budgets, creates the right culture, leads the team, and most importantly, gets the organization focused in the right direction.

Typically, the president’s perspective is short-term; on the other hand, the CEO’s perspective is long-term. The president’s primary focus is profit maximization; rather, the CEO’s primary focus is on wealth maximization.

Comparison chart

President CEO
The president is primarily responsible for the day-to-day management decisions and strategies of the organization. The highest ranking official and visionary of the organization is the CEO.
Classification
Considered the second in charge after the CEO and is directly below the CEO Known for having the highest rank in the organization.
Paper
In charge of turning the vision into reality through effective performance and trying to keep the promise. The person who makes the promise to the company and sets the long-term vision for the organization.
Function
Performs the main function in financial management and effective implementation of the strategy. Participate in operations management and strategy formation.
Reporting Manager
Reports directly to the CEO and the Board of Directors Report directly to the Board of Directors
Other responsibilities
You can work as director of operations He can also act as president and chairman of the board of directors.
Subordinate
Vice President and Senior Management President, CSO, CFO and CAO
decision level
Decisions are involved in micro-level decisions, and more involved with employees. Make decisions that are involved in macro-level decisions.
Board seat
May or may not consist of a seat on the board It contains a permanent seat on the board.
main focus
The main focus is on profit maximization. The main focus is on wealth maximization.
What is the president?

The spearhead of the organization is known as the president. The name ‘President’ proposes the person who manages an organization after the CEO, whom he considers to be the head of the organization’s office or division. The president may also make recommendations to the Board of Directors.

The president is responsible for taking care of the daily business processes, logistics and proper compliance with the organization’s policies under the instructions of the senior executives. The size and structure of an organization, responsibilities and accountability for the actions of a president vary.

A president’s subordinates are the vice president and senior management, so the president guides, directs, motivates, and directs the managers, vice president, and other executives of a certain organization. The president is primarily in charge of developing and executing strategy and underpinning all company performance.

What is the CEO?

The CEO, abbreviated as CEO, is considered the most senior and highest-ranking official in the organization. Only the BOD (Board of Directors) are superior to the CEO. The board of directors, based on the legal structure of the organization, sets the responsibilities, roles, authorities and power of the CEO.

The main focus of the CEO is to increase the wealth of the organization and shape all decisions at the macro level, such as those related to policy, strategies, objectives, etc. of the company. The CEO is also responsible for developing and employing higher level strategy. In addition, he can advise and make recommendations to the Board of Directors on various matters.

The operations, performance and general resources of the organization are under the control of the CEO. The CEO acts as the boundary between the BOD and many stages of the company.

Key differences

  1. The president is inferior to the CEO, while the CEO is considered the highest-ranking official in the organization.
  2. The president answers to the executive director, while the executive director answers to the board of directors.
  3. The president usually deals with things present at the micro level and is in charge of overseeing short-term goals such as employee management, logistics, and regular business operations; On the other hand, the CEO sees things from a macro point of view and contains a long-term vision, such as the anticipated growth and policies for the future of the company, and to formulate plans.
  4. The main motive of the president is to maximize profits year after year, since his objective is short term. On the other hand, the main focus of the CEO is to maximize the wealth of the company, which then, in the future, will help him build the legacy and benevolence of his organization.
  5. The president is usually in charge of the execution, while the chief executive officer (CEO) is in charge of the plans.
  6. The president’s main motto is “Doing Things Right” and he strives for efficiency; on the contrary, the CEO’s main motto is “Doing things right” and he strives for effectiveness.
  7. The way to measure the work of the president is the performance of the company; on the other hand, the legacy achieved is usually the way to measure the performance of the CEO.

Final Thought

The above discussion concludes that the responsibilities and roles of the president and CEO are quite different, with the president reporting to the CEO. At the same time, the CEO is considered to be the most senior official in an organization. The president reports directly to the CEO and the Board, while the CEO only reports to the Board.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button