Difference between CEO MD chairman and President?

Answer 1

A CEO is the Chief Executive Officer, an MD is a Managing Director.

The Chief Executive Officer is usually the owner of the business and outlines the companies goals and how he/she wants it to perform. The Managing Director is then the one who comes up with strategy plans and runs the workforce in order to meet the Cheif Executive Officer's orders. In some companies the Chief Executive Officer and the Managing Director are the same person, however this usually in smaller companies, but there have been instances in large corporations where they are also the same person- but this is rare. An example of a time when this occured in a large corporation would be that of Sir Reginal Miles Ansett's running of Ansett Airlines of Australia.

Answer 2

by Investopedia Staff, (Investopedia.com) (Contact Author | Biography)Story Tools

email Article

Print Article

Comments

RSS

CEOs, CFOs, presidents and vice presidents: what's the difference? With the changing corporate horizon, it has become increasingly difficult to keep track of what people do and where they stand on the corporate ladder. Should we be paying more attention to news relating to the CFO or the vice president? What exactly do they do?

Corporate governance is one of the main reasons that these terms exist. The evolution of public ownership has created a separation between ownership and management. Before the 20th century, many companies were small, family owned and family run. Today, many are large international conglomerates that trade publicly on one or many global exchanges.

In an attempt to create a corporation where stockholders' interests are looked after, many firms have implemented a two-tier corporate hierarchy. On the first tier is the board of governors or directors: these individuals are elected by the shareholders of the corporation. On the second tier is the upper management: these individuals are hired by the board of governors. Let's begin by taking a closer look at the board of governors and what its members do.

Board of Directors

Elected by the shareholders, the board of directors is made up of two types of representatives. The first type involves individuals chosen from within the company. This can be a CEO, CFO, manager or any other person who works for the company on a daily basis. The other type of representative is chosen externally and is considered to be independent from the company. The role of the board is to monitor the managers of a corporation, acting as an advocate for stockholders. In essence, the board of directors tries to make sure that shareholders' interests are well served.

Board members can be divided into three categories:

* Chairman - Technically the leader of the corporation, the chairman of the board is responsible for running the board smoothly and effectively. His or her duties typically include maintaining strong communication with the chief executive officer and high-level executives, formulating the company's business strategy, representing management and the board to the general public and shareholders, and maintaining corporate integrity. A chairman is elected from the board of governors. * Inside Directors - These directors are responsible for approving high-level budgets prepared by upper management, implementing and monitoring business strategy, and approving core corporate initiatives and projects. Inside directors are either shareholders or high-level management from within the company. Inside directors help provide internal perspectives for other board members. These individuals are also referred to as executive directors if they are part of company's management team. * Outside Directors - While having the same responsibilities as the inside directors in determining strategic direction and corporate policy, outside directors are different in that they are not directly part of the management team. The purpose of having outside directors is to provide unbiased and impartial perspectives on issues brought to the board.

Management Team

As the other tier of the company, the management team is directly responsible for the day-to-day operations (and profitability) of the company.

* Chief Executive Officer (CEO)- As the top manager, the CEO is typically responsible for the entire operations of the corporation and reports directly to the chairman and board of directors. It is the CEO's responsibility to implement board decisions and initiatives and to maintain the smooth operation of the firm, with the assistance of senior management. Often, the CEO will also be designated as the company's president and therefore also be one of the inside directors on the board (if not the chairman). * Chief Operations Officer (COO)- Responsible for the corporation's operations, the COO looks after issues related to marketing, sales, production and personnel. More hands-on than the CEO, the COO looks after day-to-day activities while providing feedback to the CEO. The COO is often referred to as a senior vice president. * Chief Finance Officer (CFO)- Also reporting directly to the CEO, the CFO is responsible for analyzing and reviewing financial data, reporting financial performance, preparing budgets and monitoring expenditures and costs. The CFO is required to present this information to the board of directors at regular intervals and provide this information to shareholders and regulatory bodies such as the Securities and Exchange Commission (SEC). Also usually referred to as a senior vice resident, the CFO routinely checks the corporation's financial health and integrity. How Does This Affect Your Investment?

Together, management and the board of governors have the ultimate goal of maximizing shareholder value. In theory, management looks after the day-to-day operations, and the board ensures that shareholders are adequately represented. But the reality is that many boards are made up of management.

When you are researching a company, it's always a good idea to see if there is a good balance between internal and external board members. Other good signs are the separation of CEO and chairman roles and a variety of professional expertise on the board from Accountants, lawyers and executives. It's not uncommon to see boards that are comprised of the current CEO (who is chairman), the CFO and the COO, along with the retired CEO, family members, etc. This does not necessarily signal that a company is a bad investment, but, as a shareholder, you should question whether or not such a corporate structure is in your best interests.

from http://www.investopedia.com/articles/basics/03/022803.asp?partner=answers

Answer 3

The CEO is a company's top decision-maker, and all other executives answer to him or her. The CEO typically delegates many of the tactical responsibilities to other managers, focusing instead on strategic issues, such as which markets to enter, how to take on the competition, and which companies to form partnerships with. This is in contrast to the chief operating officer or president, who oversees day-to-day operations and logistics. The CEO is ultimately accountable to the board of directors for the company's performance. The chairman of a company is the head of its board of directors. The board is elected by shareholders and is responsible for protecting investors' interests, such as the company's profitability and stability. It usually meets several times a year to set long-term goals, review financial results, evaluate the performance of high-level managers, and vote on important strategic moves proposed by the CEO. Directors appoint--and can fire--upper-level managers such as the CEO and president. The chairman typically wields substantial power in setting the board's agenda and determining the outcome of votes. But he or she does not necessarily play an active role in everyday management The balance of power between the CEO and the chairman varies widely from company to company. Because the CEO cannot make major moves without the board's assent, and his or her job security depends on their satisfaction, the chairman of the board is technically his or her superior. And an active chairman may use this power to effectively become the co-head--and ultimate boss--of the corporation. But most chairmen are not so involved, which leaves the CEO with considerable flexibility in running the company. The CEO can also affect the composition of the board of directors through his or her selection of senior executives, many of whom are guaranteed board seats by company bylaws. Sometimes--as was the case with Gates until Thursday, and is still the case with Case and Levin at their current companies--the chairman and CEO are the same person. Case and Levin have not yet outlined how they will divide leadership responsibilities. However, the press release announcing the AOL-Time Warner merger says that Case will play "an active role" in leading the company and that Levin will work "closely with Mr. Case" in setting its strategy. Most analysts interpret this to mean that Case, as chairman, will use his power to its fullest, giving him an upper hand over Levin.

Answer 4

Chairman is the chief of board of directors which is the highest policy making body in a company. MD is appointed by chairman to look after day to day activities of the company