CEO vs President

Publication Date :

31 Dec, 2018

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Table Of Contents

Difference Between CEO and President

CEO (Chief Executive Officer) is the most senior executive position in an organization (mostly an entity with a separate legal existence), responsible for making major decisions for the organization and supervising every activity as to whether it is being conducted as per the objectives specified. On the other hand, a President of a company refers to the leader of a particular segment or a critical area in a company instead of the leader of the whole company.

Difference Between CEO and President

Who is a CEO?

The highest-ranking executive in a company is the wealth for the company's stakeholders and shareholders. " url="https://www.wallstreetmojo.com/full-form-of-ceo/"]CEO (Chief Executive Officer). Their primary responsibilities are making corporate decisions and looking after the overall operations and its resources. The CEO always acts as the main point of communication between the Board of directors and corporate functions. The CEO also has a position on the Board.

The role and responsibilities of the CEO are not fixed but vary from company to company depending on the size and the overall structure.

Who is a President?

The President is mainly considered the leader of the organization. The relationship between CEO and President varies depending on the organization’s structure. The role of the President is loosely defined as the powers of the President differ widely in different companies. These powers can come into practice only by law.

In an organization, human resources continuously strive for the organization’s progress apart from the products, services, and strategies. The CEO and President are the two key people who hold the strongest position in the organization.

CEO vs President Infographics

Key Differences

The Chief Executive Officer is the most senior in any organization. The President is subordinate to the CEO. Also, the Chief Executive Officer is accountable to the board of directors, while the president is accountable to the CEO. Shareholders are the company's ultimate owners, and the Board of directors is responsible to the shareholders.
President looks at micro-level things and is responsible for handling short-term goals. They are accountable for handling regular business operations, logistics, and employee management. On the other hand, the Chief Executive Officer has to look at things from the macro perspective and has a long-term vision. His job is to formulate plans to forecast growth and strategies for the company's future. In small organizations, the CEO is responsible for micro and macro perspectives.
The CEO's prime focus is to maximize a company's wealth which will help him build the legacy and goodwill for his organization. In the case of a public company, these factors are synced in the company's share price returns. As discussed earlier, the President's goal is short-term; hence his prime motive is year-on-year profit maximization.
The CEO looks after the plans, and the President looks after the execution.
The CEO’s motto is "doing the right things," while the President’s motto is "doing the things right.’" The President strives for efficiency while the CEO strives for effectiveness.
Success to the CEO is organizational substantiality, while corporate growth is for the President.
Legacy achieved is the way to measure CEO's performance, while the company's performance is the way to measure President's work.

Comparative Table

	CEO	President
Ranking	The CEO is considered the highest-ranking in the organization.	The President is second in charge and directly below the CEO.
Role	The CEO promises the company and sets the long-term vision.	The President is responsible for converting the concept into reality through effective execution and keeping the promise.
Function	Operation Management, strategy formation.	Financial management and effective execution of the strategy.
Reporting Head	Board of Directors.	CEO and Board of Directors.
Other Responsibilities	The CEO may also function as the President and the Chairman of the Board of Directors.	The President may work as a Chief Operating Officer.
Subordinate	President, CFO, CSO, CAO.	Top-level management, Vice-Presidents.
Decision Level	More involved in macro-level decisions.	Involved in micro-level decisions, more engaged in employees.
Seat on The Board	The CEO has a permanent seat.	The President may or may not have a seat on the Board.
Key Tasks	The CEO ensures the Board has all the information; they scan the environment for opportunities and growth prospects. Then, they set budgets, make the organization focus in the right direction, build a suitable culture and lead the team.	Mainly the President’s task includes implementing objectives, and marketing strategies, looking after sales, research, and development. Key duties may also include optimizing processes, design, and framework and shaping the future of business.
Measurement of Success	A CEO's success is measured by how the company gains a competitive advantage through innovations. CEOs' performance can be evaluated using earnings per share, return on equity, revenue growth, and operational cash flow growth. If the company is publicly listed, then the stock performance over time is the ultimate measure of the success of a CEO's performance.	The President is the successor of the CEO. The version of the President is critical of their relationship with the CEO. The most difficult part for the President is an organizational relationship. The President's performance can be measured by the execution gap, i.e., the difference between the promises set by the CEO and the actual execution in place.
Perspective	Usually, the perspective of the CEO is the long-term.	The perspective of the President is long-term.
Prime focus	The main focus is on wealth maximization.	The main focus is profit maximization.
Striving Factor	Effectiveness.	Efficiency.
Final Result	Creating a strong legacy.	Having a strong performance.

Conclusion

Looking at the above points, the difference between the roles and responsibilities of the Chief Operating Officer and the President may be quite clear; these differences apply to large organizations. However, a single person may perform these roles in small organizations that lack financial and human resource accounting.

These roles might differ in focus, areas of expertise, knowledge, skillset, vision, view, etc. However, both roles' ultimate objective is the company’s growth and success.