What is an 'Executive Director'

An executive director is the senior operating officer or manager of an organization or corporation, usually a non-profit. Their duties are similar to those of a chief executive officer (CEO) of a for-profit company. The executive director is responsible for strategic planning, working with the Board of Directors, and operating within a budget. Executive directors report directly to the Board and are responsible for carrying out the Board's decisions. Although an executive director is also involved in the day-to-day management of the organization, these duties may be shared with a chief operating officer.

BREAKING DOWN 'Executive Director'

Executive directors of non-profit organizations are usually involved with fundraising efforts, as well as the promotion of the organization in order to raise public awareness and boost membership. The Board of Directors may appoint an executive director, and in some cases, the vote must be approved by a specified percentage of the membership. Most executive directors are paid; however, for very small non-profit organizations, the position may be on a volunteer basis.

RELATED TERMS
  1. Directors And Officers Liability ...

    Directors and officers liability insurance covers you if you're ...
  2. Outside Director

    An outside director is a member of a company's board of directors ...
  3. Non-Executive Director

    A member of a company's board of directors who is not part of ...
  4. Duty of Loyalty

    Duty of loyalty is a director's responsibility to act at all ...
  5. Interlocking Directorates

    A common business practice where a member of a company's board ...
  6. Director Rotation

    Director rotation is a process by which corporate board members ...
Related Articles
  1. Investing

    The Basics of Corporate Structure

    CEOs, CFOs, presidents and vice presidents – learn how to tell the difference.
  2. Small Business

    The Marketing Director's Pitch

    Are your shoulder's wide enough to carry a company's reputation?
  3. Financial Advisor

    Fund Boards: What They Do and Why You Should Care

    Fund boards oversee management and operations of the fund on behalf of shareholders. Make sure you've got a board that will look out for you.
  4. Personal Finance

    How to become a managing director at an investment bank

    Find out what it takes to become managing director at a major investment bank, starting from business school and surviving all of the titles in between.
  5. Taxes

    5 steps to forming a tax-exempt nonprofit corporation

    Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.
  6. Investing

    Evaluating the board of directors

    Corporate structure can tell you a lot about a company's potential. Learn more here.
  7. Taxes

    What Can a Financial Advisor Do for a Non-Profit?

    There are many ways a nonprofit can benefit from hiring a financial advisor.
  8. Taxes

    6 Financial Strategies for Nonprofits

    With limited funds and resources, it's important for non-profits to follow these strategies.
  9. Personal Finance

    The 15 Highest-Paying Jobs for Business Majors

    See the highest-paying jobs for business majors 10 years out, from PayScale’s 2016–2017 College Salary Report.
  10. Personal Finance

    The hierarchy of an investment bank

    Learn about the hierarchy of an investment bank, from the entry-level analyst to the power-wielding managing director, including salary information.
RELATED FAQS
  1. Who is responsible for protecting and managing shareholders' interests?

    Several parties are supposed to be responsible for protecting and managing shareholders' interests, including the company's ... Read Answer >>
  2. What is the difference between a president and a CEO?

    In corporate governance and structure, the roles of both CEO and president often vary across firms. Read Answer >>
  3. What is a staggered board?

    A staggered board of directors (also known as a classified board) is a board that is made up of different classes of directors. ... Read Answer >>
Hot Definitions
  1. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  2. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  3. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  4. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  5. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
  6. Interest Coverage Ratio

    The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest ...
Trading Center