Can a company have both a CEO and a managing director? Who should report to the other?
Yes, a
company can have both a CEO and a managing director https://www.indeed.com/career-advice/finding-a-job/ceo-vs-managing-director.
There's no legal restriction against it, but it's important to consider how
their roles will be structured to avoid redundancy. Here's a breakdown:
Having Both CEO and MD:
- Possible: Companies, especially larger ones, can choose to have both
positions.
- Clear Distinction: The key is to clearly define the responsibilities of each
role to avoid overlap and confusion.
Who Reports to Whom? (Depends on Structure):
- Same Person: In some cases, the CEO and MD might be the same person,
particularly in smaller companies. This is common during startup phases.
- CEO on Top: More typically, the CEO would hold the more senior position,
providing overall leadership and strategy, while the MD focuses on
day-to-day operations. In this case, the MD would report to the CEO.
- MD with Regional Focus: In some situations, the MD might oversee a specific region or
subsidiary, reporting to the CEO who manages the global company.
Ultimately, the reporting structure depends on the company's specific
needs and how they define the roles.
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