Director is a high-level position within a business organization, and there can be many directors in a large organization. They can be classified as executive or non-executive, depending on their involvement in day-to-day operations. Executive directors are involved in the daily operations of the department they are attached to and manage people, hiring and firing in their department, and dealing with contracts. Non-executive directors, on the other hand, are not involved in daily operations but play a significant role with their expertise, advice, and negotiation skills.
Managing Director is the highest-ranking officer in a business organization, responsible for management and administration. This title is more commonly used in Britain, while in the United States, the title Chief Executive Officer (CEO) is more prevalent. Both the CEO and MD are answerable to the board of directors, who are responsible for the interests of the company’s shareholders.
Key Takeaways
- Directors can be classified as executive or non-executive, depending on their involvement in day-to-day operations.
- Executive directors manage people and daily operations, while non-executive directors provide expertise, advice, and negotiation skills.
- The Managing Director (MD) is the highest-ranking officer in a business organization, responsible for management and administration, and is equivalent to the Chief Executive Officer (CEO) in the United States.
