MD stands for Managing Director, and CEO stands for Chief Executive Officer. Although these two terms can be confusing when it comes to one’s roles and responsibilities, there are distinctive differences between the two.
When discussing the differences, a Managing Director is responsible for the day-to-day business of a company while a Chief Executive Officer does not have huge responsibility for the day-to-day affairs of a firm.
The MD will be a member of the Board of Directors, and is also head of the management of the company.
The other major difference between the Chief Executive Officer and a Managing Director, is their responsibilities. The CEO has the responsibility to facilitate business, and should also have a strategic vision to align the company, both internally and externally. A CEO has to guide the employees and the executive officers.
A Managing Director is the leader of an organisation. She/he is the real motivational force for others, and she/he is a person who develops a corporate culture for an organisation. Since the MD is responsible for the day-to-day business of on organisation, she/he would be responsible for the overall management of an organisation. She/she is a person who has to bring in innovations and expansions.
Managing Directors are always held responsible for any action of the company. Moreover, the MD is accountable to the share holders. On the other hand, the Chief Executive Officer does not have to shoulder these responsibilities.
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