President vs CEO: What Is the Difference?

In many companies, the CEO is the highest-ranking executive officer, in charge of making major business decisions and often serving as the face of the company. The president is often the CEO’s second in command, responsible for overseeing the company’s daily operations. 

Depending on the business and corporate structure, the president vs CEO dynamic may differ. For example, in smaller companies, the CEO may also serve as the president.

What does the president do?

• Operational leadership: Oversees the company’s, or their particular segment of the company’s, daily operations and focuses on enhancing the efficiency and quality of existing operational systems. 
• Implementation of strategy: Takes the CEO’s business vision and the strategic plans approved by the board and translates them into actionable steps.
• Internal management: Delegates work to, and oversees the duties of, high-level management and vice presidents, ensuring their actions align with the strategic objectives set by the CEO.
• Operational decision-making: Makes daily decisions regarding the company’s operational performance, such as resource allocation and establishing project timelines, to ensure the business runs smoothly.
• Feedback to the CEO: Regularly updates the CEO, and often the board, on the company’s operational performance, setbacks and strategic recommendations.

What does the CEO do?

• Leadership: Provides unified leadership to the company’s C-level executives, and directs the company’s operations to align with its strategic goals.
• Vision and strategy: Defines long-term strategy and vision and communicates it to the president and the board, giving a sense of direction to the company.    
• Board liaison: Acts as a liaison between the board and upper-level management, communicating board decisions and strategic goals to the executive team and updating the board on the company’s operations and major initiatives.
• Decision-making authority: Shapes decision-making by setting priorities and choosing when to participate. Selective engagement helps them focus solely on high-impact decisions.
• Public representation: Represents the organisation in the public eye, answering media queries, making important statements and participating in industry events.
• Seat on the board: May also serve as the chairperson or the managing director on the board, ensuring alignment between directors and executive leadership.

Differences

Scope of responsibilities

• The CEO oversees long-term strategy, vision and external relations, makes high-level corporate decisions, supervises the executive management and works closely with the board to ensure the company is aligned with its strategic objectives.
• The president focuses more on the company’s daily operations to ensure smooth running. They oversee department heads, project execution and the implementation of the strategy set by the CEO and the board.

Hierarchy

• The CEO is at the top of the corporate hierarchy, reporting directly to the board and being ultimately accountable for the company’s direction and performance.
• The president is often the CEO’s second in charge and reports to them. The CEO usually reports onwards to the board.

External vs internal focus

• The CEO has a broader external focus, spending significant time interacting with investors, regulators, business partners and the media.
• The president has more of an internal focus, ensuring that departments meet their performance targets. However, in some cases the president may play a role in client relations and partnerships too. 

Decision-making authority

• The CEO has authority over strategic and critical business decisions that can impact the company’s future direction and structure.
• The president is often responsible for making daily decisions regarding operational efficiency, resource allocation and project execution within the bounds set by the CEO.

Can the president and CEO be the same person?

In some cases, the president may also be the CEO. This practice is common in small businesses where the duties of both roles often consolidate due to leaner resources. As the company grows and duties expand, these roles are usually separated.