What Is an Executive Director?
An executive director holds the top managerial position in an organization or business. The title of executive director is common within non-profit organizations, so as not to confuse the position with a CEO, which evokes a business connotation. The title is used in the business world as well, and is commensurate with the role of a CEO or managing director. Basically, this person is responsible for the administration and general operations of a business. They make final decisions about the forward direction of a business or organization, inner-workings of the organization, and that business’s general business model.
All members of the managerial team report to the executive director, and he or she has the final say in all decisions. The executive director usually reports to a board of trustees, who have financial stake in the business. He or she is responsible for keeping the board up to speed on new developments and for taking into account any questions or suggestions of the board. An executive director makes decisions about the future of the company and is in charge of overseeing those goals.
How to Become an Executive Director
In order to become an executive director, an individual must have at least a bachelor’s degree, but a more advanced degree will most likely be a required qualification. Because executive directors can work for any type of organization, their backgrounds can vary greatly. Some people become executive directors by starting their own businesses and finding success.
Most top executives in the United States have a bachelor’s or master’s degree in business administration, liberal arts or a discipline relevant to their field. The specific type of degree an individual will need rests entirely on the industry. Some universities offer degrees specifically tailored to executive director training, which are nice options. An MBA is also a good way to start down the path to becoming an executive director. The most important thing, however, is that an individual has the relevant managerial experience, understanding of the particular industry and foresight required for success as an executive director.
Executive Director Career Outlook & Salary
According to the U.S. Bureau of Labor Statistics, the average employment of top executives in the United States will see little to no change in the decade from 2008 to 2018. The projected employment of executives will vary by industry and will rise and fall depending on the financial state of the industry itself. Industries that are doing poorly may see mergers, and this is when many executives can become unemployed. Intense competition is always expected for executive positions, as the high salary and prestige can attract large amounts of applicants.
On Payscale.com, salaries for executive directors ranged from $60,391 to $126,153, with 1,572 executive directors reporting. According to the Bureau of Labor Statistics, the median annual wages for general and operations managers were $91,570 in 2008. The industries employing executive directors with the highest salaries were computer systems design ($133,140 annually), management, scientific and technical consulting ($130,390 annually) and management of companies and enterprises ($113,690).
