Executive Director or VP – Which Position Is Higher?

executive director or vp

Executive Director or VP position caused confusion of which one is higher in a company. With that, this section will explain which one is higher. Also, what are the differences between the two?

Which One Is Higher?

The Executive Director is higher than the VP. The reason is that the highest rank in a company is the CEO. There are other levels in a company that are also high ranks, such as COO, CFO, CIO, CTO, CAO, CDO. 

If you are an executive director, you are higher than a VP because there are only executives in this rank – no managers. But if you are a VP, you can be an executive or non-executive. If you are an executive VP, you are higher than a non-executive VP because you have more power in making decisions regarding your area of expertise.

Differences Between the Two Position

The differences between the two positions are that the Executive Director is higher than VP. Also, an Executive Director is a non-management position while a VP can be both executive and non-executive.

Executive Directors make decisions because they have no manager above them while a VP does not. But a VP has the option to not make decisions because he or she has a manager above him or her. It will depend on the situation. If a VP is given a task, he or she will do it unless it is against company rules.

In terms of compensation, an Executive Director earns more than a VP because he or she has more experience in leading companies and his or her area of expertise.

So, how much does each position earn? Check out the next section. 

How Much Do They Earn?

Being an Executive Director or VP is not for everyone. You have to have the skills, knowledge, and experience in management and your expertise. The compensation of each position also depends on how much you contribute to the company. So, how much do they earn?

Executive Directors earn more than VPs because they are higher in rank. If you are an Executive Director, you can earn from $80,000 to $150,000 while a VP earns from $60,000 to $65,000.

Executive Director or VP – Education Requirements

Education is a very important factor when deciding which position you should take. As ED you must have a bachelor’s degree in a business-related field. If you want to be a VP, you must have a bachelor’s degree in any relevant field and a master’s degree.

Job Outlook

If you are interested in becoming an ED or VP, you should know that the job outlook is great. These positions are among the highest paid jobs in the Philippines because it requires more experience and education. The Philippines is also known for having excellent companies that offer these positions. So, if you are planning to become an ED or VP, you should know that it is possible and that there will be a lot of job opportunities for you.

Conclusion

Executive Director or VP positions are both high-ranking positions in a company. The ED is higher than the VP because there are no managers above an ED. An ED has full control over his or her area of expertise. 

The difference between the two positions is that an ED has no manager while a VP can have an executive or non-executive manager above him or her. A VP earns more than an ED because he or she has more experience in leading companies and his or her area of expertise.

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