CEO vs. President: An Overview
In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge; however, in corporate governance and structure, several permutations can take shape, so the roles of both CEO and president may be different depending on the company.
Key Takeaways
- In many companies, the CEO is the leader, and the president is the second in command.
- Often the CEO and president carry out different duties, and the roles are performed by two people.
- At smaller companies or those without subsidiaries, the CEO and president roles are often carried out by the same person.
CEO
The chief executive officer (CEO) is the highest-ranking executive at any given company, and their main responsibilities include managing the operations and resources of a company, making major corporate decisions, being the main liaison between theboard of directorsand corporate operations, and being the public face of the company.
CEOs often have a position on the board and are sometimes the chair. Other titles for CEO include managing director and sometimes even president
The board of directors is elected by the shareholders of a company and is usually composed of both inside directors, who are senior officers of the company, and outside directors, who are individuals not employed by the company.
The board establishes corporate management policies and decides on big-picture corporate issues. Because the board is in charge of executive functions, and the CEO is responsible for integrating company policy into day-to-day operations, the CEO often fills the role of chairperson of the board.
Generally, the board of directors sets the policy, the president executes the policy and reports back to the board, and then the board reports back to the shareholders—the ultimate owners.
Another factor that determines the positions of company officers is its corporate structure. For example, in a corporation with many different businesses (a conglomerate), there may be one CEO who oversees a number of presidents, each running a different business of the conglomerate and reporting to the same CEO.
In a company with subsidiaries, it would be unusual to have one person carry out the roles of both CEO and president, although it does happen at times, often with smaller businesses. In such instances, the small business is often owned by the same person who is also the CEO and president.
President
In some corporations and organizations, the president is the leader of the company's executive group. In the corporate world, however, the president often refers to someone who is the leader of a segment or critical part of the overall company, rather than the leader of the overall company.
In some instances, the president is also the CEO. In small businesses, the president might also be the owner of the company. In an organization or company where a CEO is already in charge, the president is the second in command.
In the corporate world, presidents often hold the position of chief operating officer (COO). The COO, responsible for day-to-day operations,has vice presidents for different parts of the company reporting to them.
Special Considerations
While unusual, a company without subsidiaries may have one person execute the roles of CEO and president, and perhaps even chair. As such, greater communication and contact can be achieved between the board of directors that sets policies and the president who oversees the day-to-day operations. For example, Jon R. Moeller is both president and CEO at Proctor and Gamble.
These are examples of general scenarios. The CEO is not always the chair of the board, and the president is not always the COO. Whatever the arrangement, the ultimate goal in corporate governance is to effectively manage the relationship between owners and decision-makers and increase shareholder value.
Is CEO Higher Than President?
Yes, in general, a CEO role is higher than that of the president of a company. The CEO is the highest-ranking officer while a president is the second-highest ranked officer. Depending on the company, however, there may be differences between how the roles are handled and the same person may also hold both CEO and president positions.
How Is a President Different From a CEO?
A CEO is tasked with carrying out a company's mission statement, managing its overall strategy, and ensuring its strong financial performance. A president is primarily responsible for the operational management of a company.
Who Can Fire a CEO?
A CEO is hired and fired by the board of directors of a company. This gives the chairman of the board power over the CEO. If a board feels that a CEO is not performing at acceptable levels, they can fire the CEO and replace them with a new one.
FAQs
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.
Who is higher president or CEO? ›
A president is the second-in-command of a company, directly underneath the CEO. If a company doesn't have a CEO, the president holds the highest position in the organization. If the CEO is the head salesperson, the president is the head manager.
Who makes more money CEO or president? ›
The CEO reports to and works with the board and gives direction to presidents and other members of upper management. Presidents make a median salary of $203,500 per year. CEOs will average a salary of about $207,500 per year.
Which is higher CEO or COO? ›
A CEO is the top-ranking employee in a company's structure. They set the overall direction of a company and make strategic decisions about the long-term success of the business. A COO is seen as the second top-ranking individual and is in charge of the day-to-day operations of the company.
What comes after CEO? ›
The COO is second in command to the CEO and works very closely with them. They are also hired by the CEO. The CFO is hired by the CEO and works one-level under them along with the COO and other C-suite positions.
Who is more powerful than CEO? ›
Since the board chairperson is superior to the CEO, the CEO has to get the board chairperson to approve any significant moves. While the board chairperson has the ultimate power over the CEO, the two typically discuss all issues and effectively co-lead the organization.
Who is higher than the President? ›
The Senate has exceptionally high authority, sometimes higher than the President or the House of Representatives. The Senate can try cases of impeachment, which can dismiss a President for misconduct.
Is a CEO an owner? ›
Ownership in legal terms is someone who has almost all or all of the company's shares in their name. A CEO, on the other hand, is a title that has nothing to do with ownership and more to do with function.
Can I be president and CEO? ›
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 makes $100 million a year? ›
Only three of the nine CEOs making over $100 million work at S&P 500 companies: Alphabet's Pichai, Live Nation's Michael Rapino, and Oracle's Safra Catz. Hertz CEO Stephen Scherr, Peloton CEO Barry McCarthy, Sarepta Therapeutics CEO Douglas Ingram, and Pinterest's new CEO Bill Ready round out the list.
Note that not all the organizations we studied in depth have actually given their top leaders the title of “co-CEO.” Indeed, in the business world at large, the co-CEO relationship is far more common than the title—many companies are effectively run by co-CEOs, even if they're not called that.
Who is second after CEO? ›
What is a COO? The COO meaning is Chief Operations Officer. This is the second-in-command to the CEO. COOs take the CEO's vision for the company and turn it into an executable business plan.
What comes before CEO? ›
A chief operating officer supervises a company's operations and is more involved in the day-to-day activities than the CEO. The COO oversees human resources, business production, marketing, and sales. Considered the second senior executive in the executive suite, the COO reports directly to the CEO.
What is the most powerful position in a company? ›
The CEO is at the highest position in a company. They head C-level members such as the COO, CTO, CFO, etc. They also rank higher than the vice president and many times, the Managing Director. They only report to the board of directors and the chairperson of the board of directors.
Who is higher CEO or CFO? ›
The CEO is the highest-ranking role in the organization. CEOs and CFOs are not equal in the organizational hierarchy, despite both having 'Chief' in their titles. Generally, the CEO reports to the board of directors, whereas the CFO reports to the CEO.
What are the four types of CEO? ›
The four CEO types
- 01 CEO type #1: The Statesman/Stateswoman. He/She is a natural networker and narrates from an outside-in perspective. ...
- 02 CEO type #2: The Engineer. ...
- 03 CEO type #3: The Entrepreneur. ...
- 04 CEO type #4: The Highscorer.
Key Differences Between a CEO and a President
Another main difference between the two roles are the level of hierarchy. When both a CEO and president role exist within a single company, the CEO outranks the president. This means the CEO is the top person, and the president is the second-highest ranked person.
What is a better title president or CEO? ›
The CEO is the top executive in a business; the president is the second-highest executive, after the CEO. In some cases the second-highest executive in a business is called the chief operating officer (COO).
Who ranks below CEO? ›
The COO is usually second in command to the CEO. The position is vary broad and may touch on all aspects of the business. The COO helps to implement the plans and direction of the CEO and other officers. Their job entails ensuring all departments of the business work together smoothly to accomplish company objectives.
Is CEO the highest rank? ›
Key Takeaways
The chief executive officer (CEO) is the highest-ranking person in a company. While every company differs, CEOs are often responsible for expanding the company, driving profitability, and, in the case of public companies, improving share prices.
