Executive Job Titles: What Do They Mean?

CEO, Director, Vice President, Managing Partner: These job titles all signify some degree of leadership, but it can often be hard to discern the hierarchy and levels of responsibility underpinning each title. The same job can have different titles depending on the company, industry, location, and organization size.

Executive job titles help delineate an organization's structure and the reporting workflows of its staff. They also help teams understand who is in charge of what. The CMO, for instance, is the head of marketing; the CFO is responsible for finance.

Here are some key executive job titles and what they mean.

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Chair of the Board

The Chair of the Board (COB) heads the Board of Directors. This person is elected by the Board and is at the top of the organization’s hierarchy. The COB is tasked with making big-picture decisions, leading the organization’s executives, and establishing the company's corporate culture. Sometimes, the Board will elect the CEO as the COB as a show of faith.

CEO

The CEO is the organization’s Chief Executive Officer. The CEO oversees the entire executive team, often known as the C-level executives (the “C” is shorthand for “Chief”). CEOs make major decisions that impact the company's growth and success. They oversee operations, resources, and day-to-day business functions. CEOs are often chosen by the Board of Directors and shareholders, but at smaller ventures, they can also be the founder or business owner.

COO

The COO is the Chief Operating Officer. Sometimes, the COO is called the “Vice President of Operations.” The job involves managing the organization's day-to-day administration. This person often acts as the right-hand woman or man to the CEO. The COO could oversee production, sales, marketing, human resources, or all of the above. 

“Where the CEO is typically outward-facing, the COO is typically inward-facing, in charge of internal operations and communications,” wrote Investopedia. “And while the CEO devises a business strategy, it is the COO who oversees its implementation.” 

CFO

The CFO, or Chief Financial Officer, oversees the business’s finances. This is a major role that involves everything from financial reporting to overseeing the company's capital structure to deciding where to invest small-business earnings. Financial forecasting, budget preparation, and overseeing debt repayment are just a few activities that the CFO would oversee at a small business.

Other C-suite titles

Large companies may have many leaders with C-level job titles, including:

• CMO: Chief Marketing Officer, the person in charge of the business’s marketing and advertising activities.
• CIO: Chief Information Officer, the person in charge of the business’s information technology and data security.
• CCO: Chief Commercial Officer, sometimes known as the Chief Business Officer (CBO), is the person in charge of the business’s sales team, strategy, and success.
• CHO: Chief Human Resources Officer, sometimes known as the Chief Talent Officer, is the person in charge of the business’s human resources and recruiting teams.
• CTO: Chief Technology Officer, the person in charge of research, development, and technology at the company. While the CIO is primarily concerned with the business’s technology tools and platforms, the CTO is responsible for strategic planning and for leveraging technology and innovation to boost revenue.
• Chief Content Officer: This is a newer role, as social media and digital marketing have increased the importance of content marketing. The CCO works with the CMO to oversee content and channel optimization, brand consistency, segmentation, and analytics.

The C-suite leaders are considered the highest level of the organization (unless there is a Board of Directors). Other executive job titles are at roughly the same level as these C-level positions but don’t have “Chief” in the title. For instance, President, Partner, Chair, and Superintendent are other titles that can be found at the top of the org chart.

President

To make things more complicated, some companies prefer to use “President” instead of COO. 

“The president of a company is often the same position as a COO of a company,” wrote Indeed. “They report directly to the CEO and work closely with them to provide the organization with strategy, vision, and financial management.”

Often, a President is more hands-on than a COO, but this depends on the company's size and industry.

Vice President

Vice Presidents either rank directly below the C-suite executives or just under the President's level. This title usually specializes in a particular area of expertise, e.g., Vice President of Marketing or Executive Vice President of Recruiting. 

There could be different levels within the vice president role, too, starting with Executive Vice President at the top, followed by Senior Vice President, Vice President, and Associate Vice President. This position is considered middle management, as women and men in this role handle specific aspects of running the company and directly manage the workforce.

Directors and Managers

Except for the Director of Operations, Directors and Managers report directly to the Vice President and work with teams, partners, and individuals to keep the business running. Managers are responsible for leading employees to be productive, aligning day-to-day tasks with business objectives, and serving customers across various business operations.

Some companies ask Managers to report to Directors who specialize in a particular business area (e.g., the Director of Sales oversees the Sales Manager).

The exception is with the Director of Operations, a unique position. This type of Director is responsible for the company's profitability and growth. They collaborate across departments to improve processes and break down business silos. This position will report directly to the COO, if the company has one. Alternatively, this role can cover the responsibilities of a COO if the organization doesn’t have that particular role.

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Emerging executive roles in the tech industry

The explosive growth of companies in Silicon Valley has created a need for new executive roles that address specific technological advancements and business needs. For instance, the Chief AI Officer (CAIO) oversees artificial intelligence–related initiatives, including research, development, and implementation.

Many of these roles are being added to the executive suite at non-tech companies, too. For instance:

• Chief Information Security Officer (CISO): Protects the organization's digital assets from cyber threats.
• Chief Innovation Officer (CIO): Fosters innovation and new product development.
• Chief Data Officer (CDO): Manages data governance, quality, and analytics.
• Chief Compliance Officer: Ensures the business meets all external legal and regulatory requirements, as well as enforces internal policies.

The importance of C-suite collaboration

Collaboration and teamwork among the C-suite leads to a more effective, agile, and successful organization. To some degree, the influence of the C-suite depends on how the organization is structured. A flat reporting structure, for instance, decentralizes decision-making and requires collaboration at all layers of the organization; a rigid hierarchy makes it imperative that C-suite leaders make decisions together.

A well-coordinated C-suite can develop a clear, shared vision for the company's future, ensuring everyone works toward the same goals. Consistent messaging from the C-suite helps to build trust with employees, investors, and customers. And, perhaps most importantly, C-suite collaboration can foster cross-functional teams better equipped to develop innovative solutions.

How executive titles differ in startups vs. established companies

Startup companies tend to be less formal when it comes to org charts and executive titles. While a new venture is getting off the ground, executive roles are more fluid. Individuals wear multiple hats and take on responsibilities as the company changes. It’s only as a company matures that executive titles come to define clear roles and a fixed organizational structure. 

There is often an inflection point during a business’s lifecycle where it becomes necessary to create clearly defined executive roles. The more complex the company’s operations, the more important focused, specialized leadership becomes. 

Executive compensation structures: salary, equity, and bonuses

Executive compensation refers to the combination of salary, benefits, and financial bonuses offered to those in leadership positions in return for their work and expertise. Leadership often receives a more complex package that combines financial and nonfinancial incentives. This includes: 

• A fixed yearly base salary.
• Benefits, usually a combination of insurance and perks (such as a gym membership).
• Short-term annual incentives—bonuses—that are based on meeting KPIs.
• Equity compensation for individuals who work for more than three years in the business. 

The breakdown of an executive compensation package looks different at each company. However, there is a formula that you can use as a benchmark. “It is not uncommon for salary to make up approximately 30% of total compensation, bonuses another 20%, benefits about 10%, and long-term incentives (equity) about 40%,” wrote JP Morgan.

Usually, these packages are offered to C-suite level executives and other senior or executive Vice Presidents. The goal of these packages is to motivate leadership to execute the company’s growth strategy and hit performance targets. Design your incentives to reward your leaders for contributing to the company’s success. 

How to decide which executive roles your small business actually needs right now

For startups and small businesses, the job title matters less than the job description. Choose which executive roles to hire for based on what your business needs, your industry, your org structure, and your own personal leadership style. 

One approach is to hire fractionally. Fractional hiring brings in an employee for a “fraction” of the time a normal employee would work. This hiring method is not project-based; fractional hires lend their expertise on an ongoing basis to help the business achieve its goals. It’s particularly well-suited for executive-level roles, where someone can apply their expertise to help the company reach a new funding stage, launch a product, or recruit early investors. 

If you decide the need is longer-term, then recruit for your management team based on the expertise you need to bring to the table. For instance, you may be particularly skilled at crunching numbers but not at designing a marketing strategy. It makes more sense for you to hire a Chief Marketing Officer (CMO) rather than a Chief Financial Officer (CFO). 

“Building your team demands matching jobs to people’s strengths. That means giving people responsibilities according to skill level, not based on how close a friend they are, or how closely related they are to you, or whether you just like their sunny personality,” wrote Stever Robbins in Entrepreneur. 

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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