Executive Director vs. Managing Director
In large organizations, there are various types of directors, such as Director (planning), Director (personnel), and Director (finance), among others. Directors are classified as executive and non-executive in most organizations. The highest-ranking officer in an organization is usually the Managing Director. In this article, we will distinguish between Executive Director and Managing Director, two commonly found positions in organizations today.
A Managing Director is the highest-ranking officer in an organization and serves as a bridge between administration and the board of directors. They are the captain of the ship, responsible for making crucial decisions and involved in daily operations. However, they must also heed the advice of the board of directors, who work in the best interests of shareholders.
Key Takeaways
- Executive Directors have specific roles and responsibilities, and if both an MD and ED are present in an organization, the MD holds the reins with a designated role for the Executive Director. An MD is above an ED and can fire them from their job.
- In organizations without an MD or CEO, the Executive Director is the boss and head of all employees. The title “Executive Director” can be confusing, as it includes both “executive” and “director.” However, this role is more akin to a CEO or chief executive and does not involve the board of directors. The Executive Director reports to the board of directors on a daily basis.
- The main difference between an Executive Director and a Managing Director is that the title “Managing Director” refers to the highest-ranking officer of an organization, equivalent to a CEO in the US, while an Executive Director is a junior position to an MD. If there is no CEO or MD present, the Executive Director takes on the role of head executive and is involved in daily operations.
