20+ Difference Between Executive Director And CEO

Executive Directors and CEOs are top-notch job positions in any organization, business, company, or firm. We both acknowledge both positions as high-end paying jobs. But very often, the line of difference between these jobs gets lost.

The primary difference between an Executive Director and a CEO is that the former is primarily found in non-profit organizations and is the head of the board of directors. In contrast, the latter can be found in every type of organization and is the head of the whole organization.

Comparison between an Executive Director and a CEO

Parameter	Executive Director	CEO
Meaning	It refers to a professional or an executive who is not only a member of the board of directors of an organization but is also the head of the board of directors and has to represent the same for his organization or business. These professionals form a part of the top-level management and are responsible for making big decisions for the organization.	It is an abbreviation for Chief Executive Officer. It refers to any professional or executive working for the organization in a job position that is the highest-ranking job in any organization. These professionals are primarily responsible for looking after the organization as a whole. Just like Executive Directors, these professionals also form a part of top-level management and make vital decisions for the organization.
Found in	A key attribute of these individuals is that these professionals are most commonly found in non-profit organizations. They can be found in other organizations as well, but they happen to be linked with NPOs more than they are linked with other organizations.	These professionals can be found in every organization; no particular type of organization is associated with these executives, but it can be said that most commonly, they are found in profitable organizations.
Head of	These executives are known for being the head of the board of directors of any organization. They are responsible for representing the whole board on their behalf in relevant matters concerning the organization. These executives are generally chosen for this job role either by the vote of other board members or the votes of shareholders or directly by the organization’s owner.	Since these executives are associated with taking care of the organization as a whole and have to report everything to the board of directors, these executives are known as the head of the organization. These people are generally appointed by the board of directors or by the shareholders/owner of the organization.
Organizational hierarchy	Speaking of organizational hierarchy, these executives happen to be in the first place when compared to everyone else working in the organization, including the CEO of the organization. However, it can be said that these people happen to be in second place when compared with the owner of the concerned organization.	In an organizational hierarchy, these professionals tend to be in first place when compared with every other employee of the organization, and at second place when compared with the Executive Director or the board of directors of the organization, and finally third place when compared with the shareholders or owner of the organization.
Superior-subordinate	Everyone working in the organization happens to be their subordinate, including the organization’s CEO; if there is anyone superior to them, it is only the owner or shareholders of the concerned organization.	Every employee working in the organization is their subordinate. Still, the board of directors and shareholders or the owner of the organization happens to be their superiors, as these people are just employees of the organization.
Accountable to	Since there are only the shareholders or the owner of the organization at an upper position than them; thus, these professionals report to and are accountable to the owner or shareholders of the concerned organization meaning these people have to inform the owner regarding every relevant matter.	These professionals have to report and are accountable to the board of directors or the Executive Director as they are their subordinates; thus, they are expected to report all the relevant matters to the board of directors.
Control and authority	These executives have full control and authority over the organization. Since these professionals are superior to the CEO; thus, the degree of their control and authority over the organization happens to be greater than the degree of control and authority of a CEO.	These people exercise full control and authority over the whole organization as these people work at the highest-ranking job. However, their degree of control and authority over the whole organization is relatively lower than an Executive Director’s degree of control and authority, as these professionals are subordinate to the Executive Director of the concerned organization.
Responsibilities	The significant responsibilities of these professionals include framing organizational goals and objectives, delegating responsibilities to the CEO, reporting to the owner or the shareholders of the organization, looking into the expansion matters of the organization, conducting weekly, monthly and annual meetings with the CEO to understand organizational affairs, determine strategies for fundraising campaigns, leading and guiding the employees of the organization, etc.	The primary responsibilities of these individuals include framing long-term plans for the company, collaborating with various other business firms, developing strategies and tactics to ensure there is profit maximization with no wastage of resources, reporting to the board of directors, delegating tasks and responsibilities to COOs, appointing COOs, CFOs, CMOs, ensuring all the planned organizational goals and objectives are fulfilled, etc.
Daily operations	These executives do not happen to be much involved with the organization’s daily operations as these people are only responsible for making big decisions for the organization and have appointed the CEO to take care of the whole organization. These professionals conduct monthly and annual meetings to ensure work is done as it should.	These executives are much more involved with the organization’s daily operations than Executive Directors. These people are solely responsible for looking after the organization in every aspect and have to represent the organization as a whole to the board of directors and the Executive Director.
Salary	These professionals are associated with a lower salary than a CEO’s salary.	These professionals are associated with a higher salary than an Executive Director’s salary.

Major Differences Between An Executive Director And A Ceo

Who Exactly Is an Executive Director?

It refers to a board of directors member who has been chosen as the head of the same board and is responsible for representing the board as a whole in the concerned organization.

The key attribute of these professionals is that they are primarily found in non-profit organizations.

These executives come at an upper position than a CEO in the organizational hierarchy and, thus, are considered superior to everyone working in the organization, including the CEO. However, these executives are answerable to the shareholders or the business owner.

Executive Director Key Differences

It can be best described as a member of the board of directors of an organization who has been selected as the head of the board of directors and represents the same in the concerned organization. People working in this job position form a part of top-level management and are responsible for making vital decisions for the organization.
A very important characteristic of these executives is that these primarily can be found in non-profit organizations. It is not being said that these can not be found in profit organizations, but only non-profit organizations tend to have this job position.
Regarding job position hierarchy, these professionals come at an upper place than CEOs as these professionals are a part of the board of directors, which is above the CEO.
Since these professionals are above CEOs; thus, these professionals are accountable to and report to the shareholders or the owner of the concerned organization. These people do not have to report to anyone else as these professionals are everyone’s superiors working in the organization.
Generally, these professionals are not very involved in the organization’s daily operations. They typically get involved in the concerned organization’s weekly, monthly, or annual reports.

Who Exactly Is a Ceo?

It is an acronym for Chief Executive Officer which refers to an individual working in a job position that happens to be the highest-ranking job in any organization. These people are responsible for caring for the whole organization in every aspect.

Due to this reason, they are also referred to as the head of the entire organization. In the organizational hierarchy, these professionals come in first place when compared to the employees of the organization but in second place when compared to the board of directors; thus, they are answerable to them.

CEO Key Differences

It is an initialism for a Chief Executive Officer. It can be best described as an individual working in this job position whose primary responsibility is to look after the organization in every aspect, ensure the smooth functioning of the concerned organization, and represent the whole company in front of the board of directors. Due to this reason, they are also known as the head of the whole organization.
These professionals can be found in any organization; however, most commonly, these can be found in profitable organizations, companies, and firms.
Speaking of the hierarchy of these individuals in an organization, these people come at number 1 or have the highest-ranking job compared to all the other employees of the organization. However, compared to the board of directors or Executive Director, these professionals are number 2.
Since these people have the highest-ranking job, they are considered superior to every other organization’s employees. However, it does not mean that they do not have to report to anyone. These executives are accountable to and report to the board of directors or Executive Director of the concerned organization or business.
These professionals happen to be indulged in the organization’s daily activities as these executives only have to take care of the organization as a whole and represent the same to the board of directors.

Contrast Between an Executive Director and A Ceo

Meaning

Executive Director – It can be best described as a person working in this job position who is not only a member of the board of directors but is also the head of the board of directors and is responsible for representing the whole board and making big decisions for the whole organization or business.

CEO – It is an initialism for Chief Executive Officer. It can be best described as an individual working in a job position that happens to be the highest-ranking job in any organization. These professionals are primarily responsible for looking after the whole organization in every aspect.

Found In

Executive Director – These professionals or this job post is primarily found in non-profit organizations, but they can also be found in other organizations. However, most commonly, they operate in non-profit organizations.

CEO – These professionals are typically present in every type of organization; however, they are usually present in profitable or profit organizations such as companies, firms, businesses, etc.

Head Of

Executive Director – These professionals are referred to as the head of the board of directors and represent the whole board on their behalf. These executives are chosen for their roles either by the votes of other board members or by the votes of the shareholders of the concerned organization.

CEO – These executives are referred to as the head of the entire organization as these people are responsible for taking care of the organization and representing the same in front of the board of directors.

Organizational Hierarchy

Executive Director – These professionals top the organizational hierarchy, meaning they come in the first place and form the top-level management of the organization.

CEO – These professionals come in the first place when compared to the other employees of the organization. But, these individuals come in second place when compared to the board of directors of the concerned organization, as the board is above them.

Superior-Subordinate

Executive Directors – Since they top the organizational hierarchy, they are considered superior to everyone in the organization, and everyone else in the organization, including the CEO, becomes their subordinate.

If there is anyone superior to these professionals, it is only the owner or shareholders of the concerned organization.

CEO – These professionals happen to be superior to everyone else working in the organization as they tend to work at the highest-ranking job. But they are superior to only the employees of the organization. The board of directors or the organization’s Executive Director is still considered their superior.

Accountable To

Executive Director – Despite being superior to everyone else in the organization, including the CEO, it still does not mean that these people are not accountable to anyone in the organization as they are not the owner of the same.

That is why these professionals are expected to report all the relevant information to the shareholders or owners of the concerned organization.

CEO – These professionals also have to report all the relevant stuff to the board of directors or the Executive Director as these people are the organization’s employees despite having the highest-ranking job position.

Thus, these professionals are accountable to the Executive Director or Chairman of the organization.

Control and Authority

Executive Director – These professionals exercise full control and authority over the whole organization, including the CEO, as these professionals come at an upper level than the CEO of the concerned organization.

Thus, the degree of control and authority over the whole organization of these executives happens to be higher than the degree of control and authority of CEOs.

CEO – These professionals also exercise full control and authority over the whole organization as these executives work at the highest-ranking job.

However, the degree of control and authority exercised by these individuals happens to be lower than the authority and control of the Executive Director, as these individuals are subordinate to the board of directors or the Executive Director.

Responsibilities

Executive Director – The significant responsibilities of these professionals include framing organizational goals and objectives, delegating responsibilities to the CEO, reporting to the owner or the shareholders of the organization, looking into the expansion matters of the organization, conducting weekly, monthly and annual meetings with CEO to understand organizational affairs, determine strategies for fundraising campaigns, leading and guiding the employees of the organization, etc.

CEO – The primary responsibilities of these professionals include making vital business decisions for the company, framing long-term plans for the company, collaborating with various other business firms, ensuring the plans are carried out as planned, developing strategies and tactics to ensure there is profit maximization with no wastage of resources, report to the board of directors, delegate tasks and responsibilities to COOs, appointing COOs, CFOs, CMOs, ensuring all the planned organizational goals and objectives are fulfilled, etc.

Daily Operations

Executive Director – These professionals happen to be less involved with the daily operations of an organization compared to the involvement of the CEO in the daily operations, as these people are primarily responsible for making vital decisions for the organization and conducting weekly, monthly, and annual meetings to gather information regarding the organization.

CEO – These professionals happen to be more involved with the daily operations of an organization than the involvement of Executive Directors, as these people are responsible for taking care of the organization as a whole and have to represent the weekly, monthly, and annual reports to the board of directors and to do so, their involvement in the routine activities is a must.

Salary

Executive Director – These executives are associated with a lower salary than CEOs as these people are not responsible for the whole organization.

CEO – These executives are associated with a higher salary than Executive Directors as these people have to take care of the organization as a whole.

FREQUENTLY ASKED QUESTIONS (FAQs)

Q1. Which is bigger: a CEO or an Executive Director?

The latter is considered bigger or superior to the former as the former is an employee working for an organization, whereas the latter is the head of the board of directors of an organization.

Q2. Who is the superior and subordinate of a CEO?

The board of directors and shareholders or the owner of the concerned organization is considered superior to a CEO. On the other hand, everyone else working in the organization is considered as their subordinate as these professionals have the highest ranking job.

Q3. Where are Executive Directors and CEOs found?

Both professionals can be found in any organization. However, typically the former is most commonly found in non-profit organizations, while the latter is most commonly found in profitable organizations.

Q4. To whom do CEOs and Executive Directors report?

The former has to report to the board of directors or the Executive Director, whereas the latter has to report either to the owner of the organization or the shareholders of the organization.

Q5. What are the significant differences between a CEO and an Executive Director?

The major differences between a CEO and an Executive Director are that the former is typically found in profitable organizations, is more involved in daily operations, and is the head of the organization. In contrast, the latter is found in non-profit organizations, is less involved in daily operations, and is the head of the board of directors of an organization.

Conclusion

People often get confused when they hear CEO and Executive Directors due to various similarities. But despite the similarities, both are very different. Both executives form the parts of top-level management.

The major difference between a CEO and an Executive Director is that the former is the highest-ranking job in an organization and can be found in every organization. In contrast, the latter is the head of the board of directors and can only be found in non-profit organizations.