Director and executive director are both important positions within an organization. The chief executive officer of any organization is typically referred to as its director, often filled by the founder of the business. This individual is responsible for ensuring that the company achieves its objectives, overseeing operations, and providing leadership. There are two types of directors: non-executive and executive directors. Their roles and responsibilities differ significantly.
Key Takeaways
- Executive directors manage people, assets, hiring and firing, and play a lead role in contracts. They have extensive knowledge and skills across various areas and are responsible for maintaining the company’s public perception.
- Non-executive directors have less experience and knowledge than executive directors. They are more focused on providing objectivity and outside knowledge to the board, ensuring good business practices are adhered to and the interests of stakeholders are looked after.
- While both types of directors have similar legal responsibilities, their roles and scope within the company differ greatly, with executive directors being more hands-on in day-to-day operations and management.
