Difference between CEO and Director in a Company

The terms CEO and director are familiar in a company. But do you know the difference between a CEO and a director?

Use of the term CEO or chief executive officer This is often used by startups or startup. Surely you also know the term CEO after the rise of business startup in Indonesia.

Well, it turns out that in Indonesia itself, it is legally Indonesian and according to the Decree of the Minister of Transmigration and Manpower Number 40 of 2021, the CEO position is better known as directors, commissioners, and executives. 

Meanwhile, the highest position in an Indonesian company is referred to as the president director. So, you don't need to be confused anymore when you see companies that use the term president director for the CEO position.

Difference between CEO and Director Istilah

As previously stated, in Indonesia the position of CEO is parallel to the position of president director, the only difference being the use of the term. 

The mention of this term is again adjusted to the company's culture, because there are several companies that mention CEO as the highest position and president director as the second highest position.

It is not uncommon for a company the positions of CEO and president director are held by only one person. You could even say the term CEO can be equated with the main director or president director. This difference in terms will also not distinguish the functions and duties of the CEO, president director, and president director.

You can see the application of the CEO designation in the company startup or stub. Meanwhile, the use of the word director is applied to the company corporate or conventional.

Reporting from Indeed, CEO is a member of the highest leadership who has a role to oversee and lead the company to success.

In addition, the CEO has main task to recruit and retain the best employees, ensure budget funds are always available in the bank, and finally determine the vision, mission, and direction of the company.

Responsibilities of CEO and Managing Director

If chief executive officer has a similar meaning to the president director or president director, does not mean the roles and responsibilities are also the same as the managing director. 

Oh yes, you need to know that in conventional companies there are several different director positions such as director of personnel, director of finance, director of operations, and managing director.

Managing Director has responsibility for handling aspects of the organization's operations such as recruiting employees, overseeing company development, updating members of the board of directors on company operations, controlling and allocating company resources, providing improvement suggestions to directors, and offering strategic direction.

While the responsibility of a chief executive officer is responsible for overseeing the company's budget, setting the company's strategic direction, leading the company, setting revenue and productivity goals, representing the company's public image, and reviewing and analyzing changes in a company's economy and industry.

Whatever the terms and differences between CEO and director, these two positions must still have the appropriate skills, especially in leadership and organizational capabilities because both positions have responsibility for the development of the company.