What Is The Role of a President of a Corporation?

By Michael Bell Tuesday, October 16, 2018

what does the president of a company do

There are three tiers of power in a corporation:

The appointing of officers is done by the Board of Directors of the company. The most notable officer titles are President, Vice President, Secretary and Treasurer. However, if required, the board can appoint other officers, such as a Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Technology Officer (CTO), managers or any other title the board wishes to create.

Let’s first discuss what it takes to be the President of a company. The person who is President of a company is in the highest position within an organization and, in some cases, takes on the title of Chief Executive Officer as well. The President/CEO is often (but not always) the founder and owner of the business.  

In addition, he or she:

  • creates, communicates and implements the organization’s vision, mission and overall direction.
  • hires, fires and manages all employees of the company.
  • leads, guides, directs and evaluates all other officers, managers and employees, and ensures they are carrying out the daily operations of the company.
  • meets regularly with other officers or managers of the company to make sure that the decisions the organization needs to make are prescient and strategic.
  • confirms that all officers and managers are conveying the company’s philosophies and guidelines to their own teams so that all employees understand the expectations of the company.
  • oversees all the financials aspects of the company and maintains awareness of both external and internal opportunities for expansion, customers, markets, new industry developments and standards.

While these are general terms of a corporate President’s duties, they may differ in individual organizations. 

Next: Officers of a Corporation

 

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

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There are 4 comments left for What Is The Role of a President of a Corporation?

Secret said: Monday, May 11, 2020

What is the work of the President/CEO of a group of companies do? What are the things they need to do if there are a President who take care to that company who is under to him/her, does he/she have work to do or nothing at all?

HBS Staff replied: Monday, May 11, 2020

The President of a company typically has the responsibilities noted in the article above. Even if the company is the parent of other companies, President is still an important role.

tasheena said: Monday, October 28, 2019

does the president interview the employees often or not at all?

HBS Staff replied: Monday, October 28, 2019

This will vary form company to company. In a new company, the President may be the founder and only employee, so he or she would likely interview any new candidates. In a larger company, the President may not be involved with interviews very much at all.

PY said: Wednesday, April 25, 2018

Can there be 2 co-corporate secretaries? with similar powers? or a secretary and an under-secretary acting only when the secretary is absent for example?

HBS Staff replied: Wednesday, April 25, 2018

Typically, the roles and titles are specified internally in thecompany's bylaws, so it is more or less up to the company.

Ben said: Monday, April 9, 2018

Can the duty of the President conflict with the Chairman?

HBS Staff replied: Monday, April 9, 2018

No, typically the President handles all the day to day matters and works alongside the Chairman to efficiently run the business.

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