What is the difference between president and CEO?
Corporate governance deals with the structure, authority, and reporting relationships. This comprises the president, chief executive officer, and vice executive president among many others.
The lesson provides the difference between the president and CEO with a comparison table for better understanding. Let’s find out now.
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Meaning of President
President refers to the leader of an organization. It is the second-highest-ranking position in an organization and he or she is the head of the branch or division of a company.
The main role of the president is to lead, guide, direct and motivates the vice president, managers and other senior executives in the organization.
Meaning of CEO
CEO stands for Chief Executive Officer. It is the highest-ranking position in an organization and they are normally proposed by the company’s board of directors.
The CEO is responsible for increasing the wealth of the organization besides making macro decisions relating to the policies and objectives of the company.
Comparison Chart: President Vs CEO
Basic Terms | President | CEO |
Meaning | Refers to the second-highest ranking in an organization responsible for implementing policies and making operational strategies | This refers to the highest ranking in an organization responsible for increasing wealth and making macro decisions. |
Positions | Second Highest | First Highest |
Accountable for | CEO | Board of directors |
Perspective | Short term | Long term |
Main Focus | Profit maximization | Wealth maximization |
Core Function | Implementation of policies and strategies | Formulation and planning of policies |
Strives for | Efficiency | Effectiveness |
Meaning of success | Growth | Sustainability |
Result in | Performance | Legacy |
Difference between President and CEO
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Comparison Video
Summary
The core difference between the president and CEO is the ranking where the CEO is the highest-ranked position while the president is the second-highest. President strives for efficiency while CEO effectiveness.
More Sources and References
- https://en.wikipedia.org/wiki/Chief_executive_officer
- https://www.fortum.com/about-us/investors/corporate-governance/president-and-ceo
- https://www.thebalancecareers.com/what-does-a-president-do-1919122
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