Difference Between an MD and a CEO

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MD vs CEO

MD stands for Managing Director, and CEO stands for Chief Executive Officer. Some people do not differentiate between CEO and MD, and think of the two as the same. Well, there are specific differences between a CEO and a MD.

When talking of the differences, a Managing Director is responsible for the day-to-day business of a company. On the other hand, a Chief Executive Officer has no responsibility for the day-to-day affairs of a firm.

The MD will be a member of the Board of Directors, and is also head of the management of the company.

Another difference that can be noticed between a Chief Executive Officer and a Managing Director, is their responsibilities. The CEO has the responsibility to facilitate business, and should also have a strategic vision to align the company, both internally and externally. A CEO has to guide the employees and the executive officers.

A Managing Director is the leader of an organisation. He is the real motivational force for others, and he is a person who develops a corporate culture for an organisation. The MD is responsible for the day-to-day business of on organisation. Well, an MD is responsible for the overall management of an organisation. He is a person who has to bring in innovations and expansions.

Managing Directors are always held responsible for any action of the company. Moreover, the MD is accountable to the share holders. On the other hand, the Chief Executive Officer does not have to shoulder these responsibilities.

Summary

1. A Managing Director is responsible for the day-to-day business of a company. On the other hand, a Chief Executive Officer has no responsibility for the day-to-day affairs of a firm.

2. The MD will be a member of the Board of Directors.

3. The MD is responsible for the overall management of an organisation. The CEO has the responsibility to facilitate business, and should also have a strategic vision to align the company, both internally and externally. A CEO has to guide the employees and the executive officers.

4. Managing Directors are held responsible for any action of the company. He is also accountable to the share holders. On the other hand, the Chief Executive Officer does not have to shoulder these responsibilities.

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