President vs CEO
The CEO has a much wider sphere of influence than the President. The CEO is responsible for most strategic corporate decisions, whereas the President generally operates with a more limited scope. In smaller organizations, such as nongovernmental organizations and academic institutions, both CEO and president may be the same person. While CEO and president may have different titles, their roles and responsibilities are generally quite similar. CEO is an abbreviation for “chief executive officer,” whereas the president is the “president of the company.” CEOs are typically in charge of all major business decisions, marketing, finance, human resources, and operations.
Differences in Pay, Benefits, and Other Perks for Each Position
The CEO is generally paid significantly more than the President, who is typically compensated with a salary rather than an annual stipend. CEO compensation may include signing bonuses, special vacation weeks, company cars, country club memberships, and unrestricted stock options. The CEO holds significant power in large or publicly held companies. Their decisions can have both a positive and negative impact on the company. The CEO has a fiduciary responsibility to the shareholders to make decisions that are in the best interest of the company. The President, on the other hand, generally has a more limited scope of authority. They may be responsible for specific areas such as marketing, finance, human resources, or operations. In some cases, the President may also be CEO. However, this is not always the case, as the CEO typically has a much wider range of responsibilities.
Why It’s Important to Know the Differences
CEO and President are two of the most important positions in a company. It’s important to understand the differences between them in order to make informed decisions about your career. If you’re interested in becoming CEO, you need to know what the job entails. And if you’re interested in becoming President, you need to understand the CEO’s role in the company.
The Bottom Line
CEO and President are two important positions in a company. CEO is responsible for most strategic corporate decisions, whereas President generally operates with a more limited scope. The pay, benefits, and other perks for each position vary significantly. It’s important to understand the differences between them in order to make informed decisions about your career.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.