Chief Executive Officer vs. Managing Director — What's the Difference?

The Chief Executive Officer (CEO) is typically the highest-ranking executive in a corporation, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations. The Managing Director (MD), while also a high-ranking executive, often has a more focused role, usually overseeing the daily operations of the company, particularly in specific regions, divisions, or subsidiaries.

CEOs generally have a broader strategic role, encompassing the entire organization's vision, policies, and goals. MDs may focus more on implementing these policies and strategies within specific areas of the business.

In some regions and corporate structures, the titles CEO and MD can be interchangeable, with the MD often being used in British and Commonwealth countries. However, in larger multinational corporations, the CEO oversees the entire operation, while an MD may manage a specific geographical location or division.

The CEO often reports directly to the board of directors and sometimes is a member of the board, while the MD typically reports to the CEO or the corporate board.

Responsibilities of a CEO include making high-level decisions about policy and strategy, while an MD often deals with day-to-day management tasks and may have a more hands-on role in the company's operations.