Politics

Difference Between President and CEO

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Main Difference

The main difference between the president and CEO is that the President carries out all the internal operations of the organization. In contrast, the CEO primarily contributes by forming a bridge between the internal and external environment of organizations.

President vs. CEO

President is considered second in charge after the CEO and is directly below the CEO, while the CEO is known to consist of the highest ranking in the organization. The president is in command of converting the vision into reality through effective performance and trying to keep the promise; on the other hand, the CEO is the person who makes the promise to the company and arrays the long-term vision of the organization.

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The president performs the main function in the financial management and the effective implementation of the strategy; on the contrary, the CEO performs a part in operation management and strategy formation. The president usually reports directly to the CEO and the Board of Directors; on the flip side, the CEO directly reports to the Board of Directors.

Some other considered responsibilities of a president is that he may work as a Chief Operating Officer; on the other hand, some other responsibilities of the CEO other than his main function is that CEO may also act as the president and the chairman of the board of directors. The subordinates of the president is vice president and the top-level management; on the contrary, the subordinates of CEO is president, CSO, CFO, and CAO.

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The decisions of the president are involved in the micro-level decisions and more involved towards the employees; on the flip side, the CEO makes decisions that are involved in the macro-level decisions. On the board, the president may or may not consist of a seat while the CEO contains a permanent seat on the board.

The main key tasks of a president contain implementing objectives, looking after sales, marketing strategies, development, and research. The president contains some other key tasks like design, framework, and shaping the future of the business and includes optimization of processes. In contrast, the CEO confirms that the board should contain all the information, examine the environment for opportunities and growth predictions. The CEO also sets the budgets, builds a suitable culture, leads the team, and, most importantly, makes the organization focus in the right direction.

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Usually, the perspective of the president is short-term; on the other hand, the perspective of the CEO is long-term. The main focus of the president is on the profit maximization; on the contrary, the prime focus of the CEO is on the wealth maximization.

Comparison Chart

PresidentCEO
The president is mainly accountable for day-to-day managing decisions and strategies for the organization.The highest-ranking officer and visionary in the organization is the CEO.
Ranking
Considered second in charge after the CEO and is directly below the CEOKnown to consist of the highest ranking in the organization
Role
In command of converting the vision into reality through effective performance and trying to keep the promiseThe person who makes the promise to the company and arrays the long-term vision of the organization
Function
Performs the main function in financial management and the effective implementation of the strategyPerform a part in operation management and strategy formation
Reporting Head
Reports directly to the CEO and the Board of DirectorsDirectly reports to the Board of Directors
Other Responsibilities
May work as a Chief Operating OfficerMay also act as the president and the chairman of the board of directors
Subordinate
Vice president and the top-level managementPresident, CSO, CFO, and CAO
Decision Level
The decisions are involved in the micro-level decisions, and more involved towards the employeesMake decisions which are involved in the macro-level decisions
Seat in the Board
May or may not consist of a seat in the boardContains a permanent seat in the board
Prime Focus
The main focus is on the profit maximizationThe prime focus is on the wealth maximization

What is President?

The spearhead of the organization is known as the President. The name ‘President’ proposes the person who administers an organization after the CEO, who considered as the head of the office or division of the organization. The president can also present recommendations to the Board of Directors.

The president is accountable for taking care of the daily processes of the business, logistics, and proper carrying out of policies of the organization under the instructions of the top-level executives. The size and structure of an organization, responsibilities, and accountability for a president’s actions vary.

The subordinates of a president are vice president and the top-level management, so the president guides, leads, motivates, and directs the managers, vice president, and other executives of a certain organization. The president is mainly in charge of the development and carrying out of the strategy and sustaining the whole performance of the company.

What is the CEO?

The Chief Executive Officer abbreviated as CEO, is considered as the most senior and higher-level officer of the organization. Only BODs (Board of Directors) are superior to the CEO. The board of directors on the base of the legal structure of the organization fixes the responsibilities, roles, authorities, and power of the CEO.

The main focus of the CEO is to increase the wealth of the organization and to form all macro-level decisions such as related to the company’s policy, strategies, objectives, and so on. The CEO is also responsible for developing and the employment of the higher-level strategy. Further, he can advise and make recommendations to the Board of Directors on various matters.

The overall operations, performance, and resources of the organization are under the control of the CEO. The CEO performs as the boundary between the BOD and many stages of the company.

Key Differences

  1. The president is inferior to the CEO, while the CEO considered as the most senior officer in the organization.
  2. The president is answerable to the CEO, whereas the CEO is answerable to the board of directors.
  3. The president usually takes care of things present in micro-level and is in charge of supervising the short-term goals such as employee management, logistics, and regular business operations; on the other hand, the CEO looks after the things in macro viewpoint and contains a long-term vision such as forecast growth and policies for the future of the company, and to formulate plans.
  4. The prime motive of the president is year on year profit maximization as his goal is short term. On the flip side, the main focus of the CEO is to maximize the wealth of the company, which then, in the future, help him to build the legacy and benevolence of his organization.
  5. The president usually takes care of the execution, while the chief executive officer (CEO) takes care of plans.
  6. The main motto of the president is to ‘Doing the things right’ and strives for efficiency; on the contrary, the prime motto of the CEO is to ‘Doing right things’ and strives for effectiveness.
  7. The way to measure the work of the president is the performance of the company; on the other hand, legacy attained is usually the way to measure the performance of the CEO.

Conclusion

The above discussion concludes that the responsibilities and roles of the president and CEO is quite different, and the president is subordinate to the CEO. At the same time, the CEO is considered the most senior officer in an organization. The president directly reports to the CEO and the Board of Directors, while the CEO only reports to the Board of Directors.

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