What Does the President of a Corporation Do?

Whether you’re interested in forming a corporation or are just curious, it’s understandable to wonder, “What does the President of a Corporation do?” Traditionally the President of a Corporation is the highest executive officer. The Bylaws of the Corporation set forth the role of the President. Some businesses have also established higher offices, such as the Chief Executive Officer, which may be above the President as the top executive officer. The President’s express authority comes from the Bylaws and any other resolutions passed by the Board of Directors. Some of these express authorities are the power to sign contracts and manage the day-to-day business of the Corporation.

Counterparties can rely upon the signature of a President to know that a Corporation will be bound to an agreement without being able to disavow the contract as not being authorized. This is because the President is cloaked with authority to act on behalf of a Corporation. Likewise, Vice Presidents have authority to bind the Corporation. Sometimes the VPs are limited in their titles to specific aspects of the Corporation, like Vice President of Marketing or Vice President of Operations.

Other officers set forth in Bylaws include the Treasurer and Secretary. The Treasurer keeps track of the Corporation’s finances, including its funds in bank accounts. Often times the treasurer has signing privileges for checks. The Secretary holds and maintains the Corporation’s meeting minutes. Often the Secretary must attest to contracts signed by the President to confirm the President has authority to sign the contract.

In addition to the officers of a Corporation, the corporation has two other layers that make up its structure. It is owned by shareholders who elect a board of directors to oversee the management and set the strategy and objectives of the Corporation, to be carried out by the officers. Daily operations are handled by officers, and that includes the President of the Corporation. But what does the President of a Corporation do, exactly? Here’s what you need to know.

So, What Does the President of a Corporation Do on a Regular Basis?

The President is typically the highest-ranking officer of a Corporation. In some larger businesses, the President or another person will be the Chief Executive Officer (CEO). The President’s duties may vary by Corporation. But, in general, a Corporation’s President typically has the following responsibilities:

• Executing the board’s vision and direction
• Providing general leadership for the Corporation and its officers
• Meeting with top officials in the Corporation to ensure the organization is running well
• Managing the employees
• Overseeing finances
• Strategizing areas of growth for the Corporation

It is possible for one person to hold the position of multiple officers in a Corporation. For example, in small businesses, it is possible for one person to be the Corporation’s President, Secretary, and Treasurer, as well as its sole Director and only Shareholder.

The role of the President should be clearly spelled out in the Corporation’s Bylaws.

Is the President of a Corporation a Full-Time Job?

Corporations come in all sizes, from the gargantuan multi-national trillion dollar enterprise to the micorpreneur side-hustle. Being the President of a corporation does not have to be a full-time job, if the business is your own or the directors only need your assistance a few hours per month. The President reports to the board of directors and steers the ship for the destination set by the board of directors. Typically the President manages the team, oversees finances, operations, sales and marketing. Though the responsibilities and role of a President may vary from company to company, the significant time commitment required to perform the duties are what qualifies this job to be considered full-time. The role of the President is prescribed in the bylaws. However the role of President is also cloaked in many implied authorities, such as the ability to execute contracts and hire and fire employees. The role of the President should be distinguished from the role of Chairman. For the Chairman just runs the board of directors meetings and has no executive authority to operate the corporation directly.

In some larger enterprise, you may have heard of the C-suite. For businesses that need more executive leadership, other non-bylaw roles can be created, such as Chief Executive Officer (CEO). Having two separate executive leadership positions is not common practice in smaller business structures for several reasons. For example, paying the salary of two executives may not be practical or cost effective for small business owners. In a small business, combining the two jobs is more efficient because one person can manage all major strategic initiatives and day-to-day operations to streamline decision-making. As a business grows, and the responsibility increases and becomes more complex, the owner may decide to split the roles into the two different positions of CEO and President.

How to Become the President of a Corporation?

The President is appointed by the board of directors of a corporation. The quickest way of doing this is by incorporating your own business and naming yourself President. Another way of becoming President of a company is by being designated to the position in a family business where no other family members would seem to have the interest or skillset to serve in that leadership capacity.

Climbing the corporate ladder in a large corporation is sometimes thought of as winning a golf tournament. Under this “tournament theory” dozens or even hundreds of players work very hard to earn the top title, trying to compete for a position where the top executive takes home the prize for winning. Usually this would require years of proven performance in management, a deep understanding of the product and a vision for the future. Working hard in your current role, having an education and relevant work experience, developing leadership skills, understanding office politics, networking and serendipity often lead to promotions and more responsibility.