7 Sep, 2021

The Key Differences Between President Vs Ceo

The Key Differences Between President Vs CEO
Written by: - Phil Baker

Here are some key differences between President vs CEO.

 

President

CEO

President is not necessarily the face of the company.

CEO is the face of the company and often meets with the stakeholders to build a good image of the company

President is mainly in charge of the daily operations

CEO is in the back row seat leading the company with the vision

President oversees the profit and consistently hits the desired goals for success measurement.

CEO increases company’s wealth by boosting its market value.

Vice Presidents and Top Managers report to the President.

COO, CFO, CTO, CSO, and President report to the CEO.

 

‘President vs CEO’, a comparison that seems almost invalid to most of us. We keep hearing these terms now and then but still, the majority of us are not able to differentiate the aforementioned terms from each other. This is because we have always believed these two terms to be denoting the same person, which might be true in a small number of cases but is not valid in many others. 
A sound understanding of these two business corporate titles is very vital in having a complete grasp on the difference between them. First of all, coming to the hierarchy of any corporate organization, which of course varies according to the scale, extent, value, and needs of any company. The basic pillars of any company are mainly the shareholders of that company who together form the board of directors for that particular company.
These shareholders are the main owners of a company, and the board of directors includes both senior officers of the company (inside directors) and those not working in the company (outside directors). The Board of directors decides the policies related to the organization and gives their plans for any managerial issues and for taking that organization to a higher level by increasing its net worth and shareholders.

Is President Higher Than CEO?

President vs. CEO, this is a long debate but let us first define these two job titles of any corporate. We will also conclude the answer to this question, “Is President higher than CEO?”. Chief Executive Operations (CEO) is one of the c-suites executives of a company which includes Chief Operating Officer (COO), Chief Financial Officer (CFO), Chief Information Officer (CIO) in addition to CEO for performing their respective executive functions for that company.
The CEO is the highest-ranking head executive of a company. In other words, the CEO is the face of a particular company to the outside world. Nonprofit organizations also use the term Executive Director for CEO. The Board of officers decides the CEO of any company, and he has a permanent seat on the board. He can also be the chairperson of the company. Now let us understand about the president of a corporate organization. 
The President is generally the second in command and works under the CEO. We can simplify this by relating these management positions to a structure of a unit in the Army. Like any Army, the unit has a commanding officer under its command. The unit is responsible for assisting the commander in the execution of particular missions and goals. They must fulfill their respective duties for smooth functioning and benefit of the Army unit. 
The President works as the Chief Operating Officer, but this is not always the case. The President is mainly the leader of the company, and he is the head of any sub-branch or department of a company. President vs. CEO is a complex discussion as these two hold the most powerful position in any organization. Their roles differ, and the power they have varies from company to company which can only be exercised according to law. 

Companies With CEO And President

We must also talk about different companies with the CEO and President. In small companies, there might be no CEO or President, and also, if there is no CEO, then the president can assume the role of the topmost position in a company. Sometimes owners of the companies carry the responsibility of both CEO and President.
One might have a question in his mind about how he can become a President or CEO of a company because these two are the pinnacle of organizations. There are quite a few examples of people who started from small positions and now they are the CEO of their companies. However, an owner of any company can assume any role in that company that suits best his interest and the role which he is capable of. 
Few examples of such CEOs being Elon Musk, CEO of Tesla Motors; Mark Zuckerberg, CEO of Facebook; Jeff Bezos, CEO of Amazon. There are many other examples, but for becoming either President or CEO, one must have a sound knowledge of business in today’s world. 

Degree Requirement: President vs. CEO

First of all, get a bachelor’s degree from your school in Administration and business, which will impart basic business knowledge. A great deal of experience is also required because most presidents and CEOs acquired this position by working for an ample amount of time in the same company and getting promotions by continuous hard work and only after being able to achieve such a high role in that company. 
A Master’s degree is not a prerequisite for becoming either of these two, but it opens the door for opportunities for reaching a higher level and giving a more in-depth understanding of business, administration, organizational structure, and network.

Roles Of CEO And President In A Company

Let us have a look at the roles of both CEO and President, which will differentiate these two entities because both have a different set of minds for their operations which ultimately culminates in the success and flourishment of the organization. The CEO of a company performs the following main roles in any corporate organization.
The CEO is the main decision-maker of any company because his main role is to make long-term plans which will decide the future of the company. He has a broad and long-term vision. He is the ultimate decider of any company as he is the chairperson of the board of directors, and he is directly answerable to them, and he gives advice to the board of directors regarding various strategies for the future of the organization.
The CEO is the bridge between operations and the board of directors. He makes sure that their decisions are implemented according to the desired needs by his under command. He formulates how the company will have an impact on the community, after which the only trust among the community can be built. This increases not only the net worth but also the company’s market value increases the company's product.
In short, he grows the company and oversees future planning and operations. The CEO is the main salesperson of the company. His main role is to increase the market value of the company by increasing shareholders, investors and introducing new products in the market. Implementation of new strategies, amendments of current policies, and direction of the company gives the CEO another role of being a bridging link between the investors in the community and the company.
These were some of the few roles a CEO plays in any company. Let us now have a brief overview of the role of the President in a company. The job of the President starts after the board of directors and CEO have directed the long-term strategies and goals for the company. The president, after receiving these, decides the budget for that company and makes sure that all the departments stay with their finances.
Just like the CEO giving the policy for the whole company, likewise, the President decides the policy for each of the departments of the company. He designates new positions and reorganizes the basic structure of departments. In short, he changes the management style of departments and helps department managers in leading their teams. The president is more aware of the company and its departments than the board of directors.
That is because he is in direct contact with the employees of the company, so he has a very pertinent role in giving suggestions to the board in implementing the business strategy and accomplishing the company’s goals. Another role being played by the President is that he sets standards and a metric system to measure the performance of the employees.
He makes sure that the employees possess the sufficient qualities to work efficiently and effectively to achieve the goals and vision of the company. This is important because a company is as strong as its weakest link, so everyone has to play his complete role for the betterment of the company.

Difference Between CEO And President

We have discussed these two designations and their duties briefly. Hence, now we are going to discuss the difference between CEO and President in a company. The CEO is the public face of the company because he deals with the public, meets investors and senior directors of other companies to build a positive image of the company.
Culminating in maximization of wealth of the company in contrast to which the president has internal representation in the company having the conscience be the employees of the company. He overviews that policies and goals set by the company are properly implemented and achieved. The CEO sets the company’s vision where he wants to see his company in the long run, while the president is mainly responsible for day-to-day operations.
Another basic difference is that the CEO is hired by the board of directors, and the president is hired by the company itself for the smooth functioning of the company. The CEO increases the wealth of the company by increasing the market value. The president has the main role in increasing the profit of the company by diligently and efficiently achieving the desired goals.
People who come directly under the command of the CEO are chief executives like COO, CFO, CTO, CSO, and the president, and those who are under the command of the president are other chief officers CFO, CTO, CSO, Vice Presidents, and top managers. This is a basic difference between the command and control of these top-rank position holders of a corporate organization.
The main difference between the orientation and decisions of both CEOs and presidents is that the CEO has a role of being strategic and taking long-term and macro decisions. While the president plays the role of being tactical short-term or intermediate and micro-decisions, which are on the company level. We can also understand the difference between president and CEO by taking a very basic example of our bodies. 
The mind in our body is responsible for the thinking and planning process, after which it directs the body using neuronal connections to make that thought into reality by performing that task physically. Likewise, the CEO envisions some goals, targets, and strategies for the company. While the president makes sure that the vision of the CEO becomes a reality and every plan is put into action, giving the desired results.
A basic understanding of the difference can be obtained by knowing a category of business which is Conglomerate Business.

Conglomerate Business

A type in which the company contains multiple businesses and each president leads on a particular segment. All segments of the company are led by one CEO, which clearly shows that the CEO is the main top executive of any company. Whereas the president is mainly second in command and works under the CEO. The CEO has a long-term focus, and the president has a short-term focus. The CEO reports directly to the board of directors, and the president reports to the CEO. 
The CEO can assume the role of the chairman of the board, while the president can assume the role of Chief Operating Officer (COO).

Efficiency And Effectiveness: Who Opts For which?

Efficiency is the fundamental reduction in the number of wasted resources that are used to produce a given number of goods or services (output). Whereas efficiency most often describes what is capable of producing desired results without wasting materials, time, or energy, and here comes the difference.
A clear President vs. CEO clash can be seen when considering efficiency and effectiveness as two different attributes. The CEO believes in achieving effectiveness while the president demands efficiency. There is also a similarity between the two because both of them have some legal responsibilities to the shareholders, which are broken down into three distinct fiduciary duties: the duty of care, loyalty, and disclosure.

Bottom Line

Concluding the President vs. CEO comparison, we cannot say that the president is by any means a higher rank than the CEO or the other way around because both have their duties and both are equally required for the success of a company and comparison can only be made between two similar entities. Most importantly, both the President and CEO would know how to construct a well-crafted mission statement that is going to launch the company into great success and provide their employees with monthly pay stubs and longevity.

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