Managing Director vs. President: What Are the Differences?

The roles of managing director and president are both high-level positions within a company. Though they share some similarities, there are several key differences between the two. In this article, we discuss the differences between a managing director and a president, and we provide additional information on other executive-level positions.

What is a Managing Director?

A Managing Director is a senior executive who is responsible for the overall management of a company or organization. They develop and implement strategies to achieve the organization’s goals. They also oversee the day-to-day operations of the company. Managing Directors are often responsible for the financial performance of the organization. They develop budgets and track revenue and expenses. They also create reports for the Board of Directors or shareholders. Managing Directors typically have a team of managers who report to them.

What is a President?

The President of an organization is typically the highest-ranking executive and is responsible for the overall management and direction of the company. The President establishes the company’s objectives and strategies and works with the Board of Directors to implement them. The President is also responsible for making sure that the company complies with all applicable laws and regulations. The President may also be responsible for representing the company to shareholders, the media, and the public. In some organizations, the President may also be the Chief Executive Officer (CEO), which is the highest-ranking position.

Managing Director vs. President

Here are the main differences between a managing director and a president.

Job Duties

A president and managing director both have varied job duties, depending on the company they work for. Typically, a managing director oversees the daily operations of a company and makes sure its employees complete their tasks efficiently. A president typically manages the overall strategy for a company, deciding where it should expand and how it can improve. However, some presidents also manage certain aspects of a company’s operations. For example, if a company is launching a new product, the president may oversee the product’s initial development.

Job Requirements

Managing directors and presidents typically need a bachelor’s degree in business administration, economics or another related field. They also need several years of experience working in management roles before they can be considered for a managing director or president position. Additionally, many organizations prefer candidates who have a master’s degree in business administration (MBA) or another advanced degree. Some managing directors and presidents also pursue certifications through professional organizations, such as the Institute for Certified Professional Managers (ICPM).

Work Environment

Managing directors and presidents often work in different environments. Presidents typically work in an office, while managing directors may travel to visit clients or attend meetings with other executives. A president may also have a more formal role within the company, such as attending board meetings, while a managing director may be more involved in day-to-day operations.

Skills

Both managing directors and presidents are responsible for overseeing the operations of their respective organizations. As such, they both need to have excellent problem-solving skills to identify issues and develop solutions. They also need to be able to delegate tasks effectively and manage teams of employees.

Managing directors typically report to a board of directors, while presidents usually report to shareholders. Because of this, managing directors may need to have stronger presentation skills to pitch ideas to a board, while presidents may need to be better at public speaking to address shareholders. Additionally, managing directors may need to have more financial knowledge to understand budgets and make decisions about where to allocate resources, while presidents may need to have a better understanding of the overall business landscape to make strategic decisions about the direction of the company.

Salary

The average salary for a managing director is $135,809 per year, while the average salary for a president is $133,848 per year. The salary for both positions can vary depending on the size of the company, the industry in which the company operates and the level of experience the individual has.