All rights reserved. (Difference Between Managing Director & Executive Director. They think and work on how to advance the company while designing strategies that move the company financially forward. The group of people who reports to the CEO include: COO – Chief Operating Officer – This person is responsible for the day to day operations or an organization. (2020, Jun 4 of publication). Olivia is a Graduate in Electronic Engineering with HR, Training & Development background and has over 15 years of field experience. This person could be thought of as the second in command behind the Chairman or CEO. Managing Director is someone who is responsible for the daily operations of the company or the organization or corporate division. Board further delegates the powers to the CEO and MD to manage the organization and routine operations of the company. Managing directors have the utmost responsibility of managing the resources and regulate the operations of the organization, which results in company prosper and profit. Managing Directors ensure the business performance from heads and conduct meeting for improvement. What is the difference between Executive Director and Managing Director? As you can see, a managing director is above an executive director and can fire the latter from his job. Movie Directing and Cinematography Professions Video: Career Options. • Executive Director is a post that is not very common, but when there is one along with MD, he is the junior of the two and MD can fire an executive director. A managing director is directly responsible to manage the day to day functions in an organization and reports to the CEO regarding any progress and escalations required within the organization. This article tries to differentiate between the two posts, Executive Director and Managing Director that are commonly found in organizations these days. Executive directors are acting as an intermediary between the company and the board under their supervision company takes progressive action and attains the predefined goal of the organization. A Managing Director is accountable to the shareholders of the company but he does not have the substantial authority to sign cheques or share certificates. For example, large companies may have a director of human resources, director of marketing, director of production and director of information technology. They are the head of management for an organization. The managing director is entrusted with substantial powers of management of the affairs of the company. Sources: *, **U.S. Bureau of Labor Statistics (BLS). All in One Financial Analyst Bundle (250+ Courses, 40+ Projects). All in One Financial Analyst Bundle (250+ Courses, 40+ Projects). • In the absence of a CEO or MD, it is executive director who is the head executive of a company and is directly involved with day to day operations. On the other hand, the Chief Executive Officer does not have to shoulder these responsibilities. Example: Mukesh Ambani – Chairman and Managing Director of Reliance Industries; Mark Zuckerberg – CEO and Chairman of Facebook, These allegations came in light after his statement of taking his company (Tesla) private which indicated availability of unreported funds, As a part of a settlement agreed of SEC, he had to step down as Chairman along with a penalty of $20m, while keeping the position of CEO intact, The main objective to separate his position of CEO from Chairman is to make him focus solely on the company’s operation and not on shareholders demand.