Executive VP definition is the focus of this article. And will be used to avoid the confusion caused by the need to use several terms for the same executive position in different industries.
What is the Executive VP Definition?
While the main job of an Executive VP is to work with the CEO and other senior managers to develop and implement strategies and processes to achieve corporate goals and objectives. The Executive VP definition varies from one industry to another, as well as from one company to another.
The Executive Vp Definition Can Be Different in the Following Ways
Scope of authority
Whether the executive has direct control over day-to-day operations or is limited to overseeing operations as a member of a larger management team.
The position may report directly to the CEO or may report to a Chief Operating Officer (COO), Chief Financial Officer (CFO), or another executive.
Impact of position on corporate performance
The Executive VP may be charged with developing and implementing business strategies that substantially impact the company’s operating performance,. Or the Executive VP role may involve more routine oversight of operations.
Responsibility for human resources
The position may oversee HR as part of the job, or authority over HR may be held by a different executive.
The Executive VP may have direct control over a large budget, or authority to approve a budget for a particular business unit or function under the Executive VP’s responsibility.
Relationship with other executives
The Executive VP may have a direct reporting relationship to the CEO or may report to a COO, CFO, or another executive. In some companies, executive vice presidents report to several executives.
The Executive Vp Definition Can Vary in the Following Ways
Size of company
The Executive VP may be responsible for overseeing a single function or business unit within a large corporation or may be responsible for an entire division or subsidiary. The position may also be held by an individual who reports to the CEO and is not part of a larger executive team.
The position of the executive vice president may be defined differently in different industries. For example, in some industries, the executive vice president is a senior-level executive who reports directly to the CEO and helps develop and implement strategies to achieve corporate goals and objectives. In other industries, such as retailing, an executive vice president may be a middle-level executive who oversees the operations of several departments within a larger organization.
The Executive VP may be responsible for overseeing operations in a single location or may be responsible for operations at multiple locations. Executive vice presidents who oversee multiple locations may report to an Executive VP who is responsible for overseeing all operations outside the country in which the company is based, or to an Executive VP responsible for overseeing all operations within a country or region.
The definition of an executive vice president varies by company and industry. The role may include helping develop and implement strategies to achieve corporate goals and objectives, working with the CEO and other senior managers to oversee business operations, or performing both of these functions. The position may also involve direct management of a unit or business segment, as well as responsibility for human resources, budgeting, and other activities.
An executive vice president may be the second-highest ranking executive in a company. The position is sometimes an executive VP, EVP, or EVP and is common as EVP in abbreviation. He is also an executive vice president of business development.