CEO vs Managing Director Who is Higher in Company Hierarchy (2025)
CEO vs Managing Director vs Director vs Owner — Who is Higher? (2025 Guide)
If you’re wondering who is higher between CEO or Managing Director, or confused about the difference between Director, Managing Director, CEO, and Owner — this post explains everything simply. You’ll also learn about CEO vs Director salary, Managing Director vs CEO roles, and where the Chairman fits in corporate hierarchy.
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Quick Answer — Who is Higher?
In most companies, the hierarchy is as follows:
- Owner / Shareholders → own the company.
- Board of Directors → govern and make strategic decisions.
- Chairman → heads the Board.
- Managing Director (MD) or Chief Executive Officer (CEO) → leads day-to-day operations.
- Directors → oversee specific departments or functions.
In short: Owner > Board of Directors > Chairman > CEO/Managing Director > Directors.
Director vs CEO vs Owner — Key Difference
| Position | Main Role | Who Appoints | Reports To | Who is Higher |
|---|---|---|---|---|
| Owner | Person or entity owning majority shares in company. | Self (Founder or Investor) | Not applicable | Highest Authority |
| Board of Directors | Group of people governing the company on behalf of shareholders. | Appointed by Shareholders | Owners / Shareholders | Above CEO & MD |
| Chairman | Heads the Board, sets overall vision and strategy. | Chosen by Board | Board / Shareholders | Above CEO and MD |
| Managing Director (MD) | Handles day-to-day management and execution of board decisions. | Appointed by Board | Reports to Board / Chairman | Below Chairman |
| Chief Executive Officer (CEO) | Leads company operations, responsible for overall success. | Appointed by Board | Board / Chairman | Same or slightly below MD (depends on structure) |
| Director | Heads a specific function like Finance, Marketing, or HR. | Appointed by Board / CEO | Reports to CEO / MD | Below CEO & MD |
CEO or Managing Director — Who is Higher?
The Managing Director (MD) is often considered slightly higher than CEO in Indian and UK companies, as MD is part of the Board of Directors and has legal responsibilities under the Companies Act.
In contrast, in American companies, the CEO is the highest executive officer, and there may not even be a Managing Director.
- In India/UK — Managing Director can override CEO in some cases.
- In USA — CEO is the ultimate authority in management.
In short: MD and CEO are often equal in power — the title difference depends on company structure.
Managing Director vs CEO vs Chairman
| Position | Role | Hierarchy Level |
|---|---|---|
| Chairman | Leads the Board and oversees the CEO/MD. | Topmost (Strategic) |
| Managing Director (MD) | Manages daily operations, executes board policies. | Second Highest (Operational) |
| CEO | Heads the executive team, responsible for company performance. | Same or Slightly Below MD |
Managing Director vs Director — What’s the Difference?
A Managing Director has control over the entire company’s management and execution, while a Director oversees only one specific area or department (like Finance Director or HR Director).
- MD = Manages entire organization.
- Director = Manages specific division under MD or CEO.
Board of Directors vs CEO — Who is More Powerful?
The Board of Directors is more powerful than the CEO because it can hire or fire the CEO and controls the overall company strategy. The CEO executes what the Board decides.
CEO vs Director Salary (India 2025)
| Position | Average Annual Salary (India) | Top-Level Salary (Large Corporates) |
|---|---|---|
| Director | ₹30 lakh – ₹80 lakh | Up to ₹1.5 crore |
| Managing Director | ₹60 lakh – ₹2 crore | ₹5 crore+ |
| Chief Executive Officer (CEO) | ₹70 lakh – ₹3 crore | ₹10 crore+ in top firms |
Note: Salaries vary by company size, industry, experience, and stock options.
Director vs CEO vs Owner — Summary Table
| Criteria | Owner | CEO | Director |
|---|---|---|---|
| Appointed By | Self / Shareholders | Board | Board / CEO |
| Focus Area | Ownership & Vision | Execution & Performance | Specific Function |
| Reports To | None | Board / Chairman | CEO / MD |
| Who is Higher? | Highest Authority | Below Board / Chairman | Below CEO / MD |
Frequently Asked Questions (FAQ)
Q1: Who is higher — CEO or Managing Director?
A: In India and the UK, the Managing Director can be considered higher since they are part of the Board. In the US, the CEO is the highest executive officer.
Q2: Who is higher — CEO or Chairman?
A: The Chairman is higher than the CEO because they head the Board of Directors, which can hire or remove the CEO.
Q3: Is Director higher than CEO?
A: No. The CEO is higher than a company’s department-level Directors.
Q4: Who is more powerful — CEO or Owner?
A: The Owner holds ultimate control through shareholding, but the CEO runs the company’s daily operations.
Q5: Can one person be both CEO and Managing Director?
A: Yes, in many companies one person holds both titles — especially in private firms.
Q6: Who earns more — CEO or Managing Director?
A: Usually, CEO earns more globally, but in India and UK, Managing Directors often have equal or higher pay.
Conclusion
In conclusion, the corporate hierarchy typically goes from Owner → Board → Chairman → CEO/Managing Director → Directors. While titles vary across countries, Managing Director and CEO are the top executive roles. The Chairman and Board hold ultimate authority, and Owners stand above all.
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