Founder vs CEO: Whats the Difference? 2025

Master of Global Business Administration degrees specializing in finance or international relations can be advantageous for jobs with corporations. Some professionals with a background in consulting may have the broad operational knowledge necessary to work as a managing director. CEOs also serve as the face of the company for employees and stakeholders.

• This also opens doors to other roles like Chief Operating Officer or Vice President.
• A founder/CEO is uniquely positioned to preserve the company’s original idea and vision as the business grows.
• While both roles share a similar salary level, entrepreneur and CEO Colin Anstie cautions against entering this type of role for the money.
• Whereas, the Managing Director, follows through on the CEO’s instructions, which the CEO later evaluates and reports on.
• Nonprofits develop their leadership structure based on several things, including the nonprofit’s size, type of industry, geographical location, regulations and other criteria.

Careers at Northwest

A CEO’s duties include increasing share price, market price, revenues, or other financial factors. The President, Deputy Chief Executive, CFO, COO and Managing Director are under the CEO’s guidance and supervision. Therefore, it is common practice to state that the Chief Executive Officer, or CEO, serves directly under the Board of Directors. When assessing the leadership requirements of your organisation, it pays to understand the key differences between the two most senior positions in a company.

But if you prefer to be behind the scenes and focused on getting work done rather than managing appearances, a managing director role may be more suited to you. CEO and director are two different roles, however in some cases the same person will hold both positions. It’s common for executives in smaller companies and startups to hold many titles and roles, in which cases it’s typical for a CEO to also be a director. Overall, a CEO and the board craft a nonprofit’s strategy according to the organization’s mission and vision. The managing director is the individual who is responsible for bringing the plans to life and ensuring progress toward the nonprofit’s goals.

CEO vs. Managing Director: How These Roles Differ

One of the key attributes of a Managing Director is their operational expertise. They have a deep understanding of the company’s operations, processes, and systems. MDs work closely with department heads and managers to ensure that operations run smoothly, deadlines are met, and quality standards are maintained. Problem-solving abilities are crucial because it ultimately falls to a managing director to solve operational issues. They’re responsible for charting the company’s overall direction and long-term goals. For someone to truly be successful in these roles, they will likely need an open mind and the interest and capacity to learn the required skills.

Before committing to an MBA based on the reputation or location of a university, consider the units you will study and the learning outcomes. The following courses from Australian universities will give you relevant knowledge and skills to work towards a senior role in the industry. As Anstie progressed his career, he focused on building the skills he would need to lead his own business one day.

Northwood Global MS in Business Analytics

CEOs typically rise through the ranks, gaining skills and knowledge as department managers and junior executives before applying for C-suite jobs. They need business knowledge to anticipate future trends and formulate effective long-term plans. Yes, a CEO usually reports to the board of directors and works closely with them in developing company interests. This might depend on the company, but generally speaking, a CEO usually ranks higher than managing directors.

According to the Australian Bureau of Statistics, both managing directors and CEOs work an average of 52 hours a week. A chief operations officer, or CEO, is higher than a managing director. The managing director is responsible for the everyday operations, while the CEO oversees the direction and success of the company. If you’re set on a leadership position in a company, learning about traditional leadership structures can help you take the right steps toward your ideal job.

The role of a CEO

Then, the Managing Director must understand the company culture and work directly with employees to keep them engaged and aligned with those values. In this post we’ll walk you through the key differences of a CEO vs Managing Director. As the face of the organization, CEOs often travel for the nonprofit, making calls on potential partners and interacting with clients and the public.

But from the overall function of each position to their respective rankings within the corporate structure, the work of CEOs and Managing Directors differ in several ways. Some organizations have one or the other, but depending on your corporate structure, you might need both a CEO and a Managing Director. Below, we’ll explore the differences in responsibilities between these two roles. Managing director and CEO roles are both senior-level roles that oversee a company, so an MD role isn’t typically a stepping stone to becoming a CEO. But the skills can transfer if you are applying for different roles at other companies. For emerging startups and SMEs, an MD might suffice to steer both strategic and operational efforts.

Responsibilities

Any kind of experience that you gain throughout your career can be beneficial to developing a CV suited to a CEO or managing director role. This also opens doors to other roles like Chief Operating Officer or Vice President. A Managing Director reports ceo vs managing director to the CEO on updates and concerns on the day-to-day business of the company. They are responsible for the smooth functioning of daily processes and manage the managers and other department heads in a company.

They answer to shareholders and board members but are responsible for making all major decisions at the company. The CEO has the ability, if they wish, to replace the managing director. The CEO focuses on strategy, long-term planning, and plotting the direction of the company. They make high-level decisions about acquisitions, developments, or company structure, and they serve as the face of the company for investors, board members, and the public. The career path can include lower and mid-level management jobs or work as the director of a specific department.

• As a company leader, the CEO drives change and motivates the employees.
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• The third method is appointing a Managing Director with the Board of Directors.
• Within the corporate world, the roles of CEO (Chief Executive Officer) and Managing Director are often seen as the highest-ranking positions within a company.
• In others, their role might be at par with the CEO and they might also be a part of the board of directors.

They are also in charge of making all the important decisions for every aspect of the company. If you have wondered who is the senior-most between the CEO and Managing Director of a company, or what the difference between the two roles are, then you are not alone. Their roles are largely different and both are essential to a company’s smooth running, depending on the company.

While the differences between a managing director and a CEO are becoming clearer, there are various things that they have in common. It can be helpful to also explore these for a more complete picture. Stay on top of all the latest updates on global perspectives, industry research, business practices, and more to push your career forward and grow your company. CEO is an executive position in a company and the owner of the company is different.