When it comes to Executive and Non-Executive Director (NED) roles, many students, mid-level employees and even senior-level managers are unsure of the differences and overlaps. In this article, we look at the contrasts and similarities between the two corporate functions, the various job categories and industry roles, as well as discuss the CV and skills requirements, remuneration structures, C-suite (Chief Executive) levels, Chairpersons, and Presidents.<\/p>\n\n\n\n
In most Executive roles, you would report directly to the CEO (Chief Executive Officer)<\/a> of the company. Your responsibilities focus on overseeing the running of the business day to day. Your work will focus on operations and achieving the visions and objectives set out in the various strategic plans.<\/p>\n\n\n\n As an Executive Team, you will be directly accountable to the Company Board and liaise regularly with them. To run smoothly, the organisation needs both structures. Executives do not have legal responsibilities and take their lead from the Board, even when they have helped to determine the strategic direction.<\/p>\n\n\n\n According to Deloitte, <\/em>in law, there is no real distinction between the different categories of Directors. Thus, all Directors must meet the required Standard of Directors\u2019 Conduct in Section 76 of The Companies Act<\/em> when performing their functions and duties. It is an established practice, however, to classify Directors according to their different roles on the Board.<\/p>\n\n\n\n The classification of Directors becomes particularly important when determining the appropriate membership of Specialist Board Committees, and when making disclosures of the Directors\u2019 remuneration in the company\u2019s annual report.<\/p>\n\n\n\n The NED takes on a strategic, board-level position. Reporting to the Chair, they will be collectively responsible for the overall direction, including leadership, governance, and financial assurance.<\/p>\n\n\n\n According to King III Annex 2.3, <\/em>the Non-executive Director plays an important role in providing objective judgment, which is independent of Management, on issues facing the company. Not being involved in the management of the company defines the Director as Non-executive.<\/p>\n\n\n\n Non-executive Directors are independent of Management on all issues including strategy, performance, sustainability, resources, transformation, diversity, employment equity, standards of conduct and evaluation of performance.<\/p>\n\n\n\n The Non-executive Directors should meet from time to time without the Executive Directors to consider the performance and actions of Executive Management. An individual in full-time employment of the holding company is also considered a Non-executive Director of a subsidiary company unless the individual, by conduct or executive authority, is involved in the day-to-day management of the subsidiary.<\/p>\n\n\n\n There is also a level of risk management when you are a NED. As a Board Director, you are legally responsible for your Executives\u2019 actions and any consequences sit firmly with the Board. You are not just an advisory consultant.<\/p>\n\n\n\n NEDs must listen to all parties, respect the structure of delegation, and provide advice when necessary. You need to know the business inside out and prepare to challenge certain activities. Whilst you will not be involved in the day-to-day operations of the business, you will regularly liaise with the Executive Team.<\/p>\n\n\n\n Executive job titles are used to describe individuals who have C-level jobs. The “C” in C-level jobs means chief. C-level Executives are responsible for the strategising and decision-making that contributes to the success of a company or organisation. Each Executive’s responsibilities and daily tasks will vary based on the company they work for.<\/p>\n\n\n\n Executive job titles also include those with President or Director in their job title, and these Executives collaborate with C-level Executives to make decisions and strategise. They also manage and motivate teams for quality assurance and productivity.<\/p>\n\n\n\n Each Executive has their own unique set of responsibilities that often change depending on the industry and company the Executive works for. Most Executives perform many job duties that may not be directly related to their job title.<\/p>\n\n\n\n Tier 1<\/strong> includes the C-level Executives of a company and is considered Senior Management. These are the highest titles in an organisation, and these titles are given to individuals who have a wealth of knowledge and experience in business management, strategy and marketing. The CEO is the highest title presiding over the other Executives in a business. The COO (Chief Operations Officer) is the second chain of command in an organisation and usually oversees the other Executives. The other C-level Executives are equal to each other in their titles and positions. However, the hierarchy and titles may differ depending on the company or organisation. These titles include:<\/p>\n\n\n\n Tier 2<\/strong> business titles are considered Middle Management of a company. These roles are direct subordinates of Tier 1 business titles. Middle managers are semi-executive positions that are responsible for leading teams of employees and ensuring their productivity aligns with the organisation’s goals. These titles include:<\/p>\n\n\n\n CEOs are responsible for overseeing the entire C-level Executive team. They also are responsible for making the major decisions, managing the resources and overall operations of a company. A CEO in a large corporation will deal with strategic decision-making that directs a company toward overall growth. CEOs in smaller corporations may deal with the day-to-day functions of a company. A CEO is usually chosen by the Board of Directors and their Shareholders. CEOs communicate directly with the Board and Corporate Operations. They are the visionaries of a company and often set the tone and corporate culture.<\/p>\n\n\n\n <\/p>\n\n\n\n The primary responsibility of the President of a company is often the same position as a COO of a company. They report directly to the CEO and work closely with them to provide the organisation with strategy, vision and financial management. President roles will vary greatly based on the structure of an organisation and what role the Board of Directors requires or prefers a President of a company to have. In some organisations, a President is responsible for implementing corporate goals with a more hands-on approach, and they deal directly with the entire workforce.<\/p>\n\n\n\nThe Non-executive Director (NED)<\/strong><\/h2>\n\n\n\n
C-suite Executive job titles<\/strong><\/h2>\n\n\n\n
\n
\n
Chief Executive Officer (CEO)<\/strong><\/h2>\n\n\n\n
Presidents and Chairpersons<\/strong><\/h2>\n\n\n\n
Company President<\/strong><\/h3>\n\n\n\n
Company Vice President<\/strong> (VP)<\/h3>\n\n\n\n