| Detail | For this role |
|---|---|
| Department | Leadership and Senior Management |
| Level | Leadership |
| Reports to | Managing Director |
| Direct reports | Business Unit Heads, Functional Heads |
| Experience | 15+ years in senior leadership, with a record of running a business or function |
Executive Director job description template
Copy this job description, replace the text in square brackets and post it on your careers page or a job portal.
Job title: Executive Director
Department: Leadership and Senior Management
Reports to: Managing Director
Location: [City], [office, branch or site]
About the role
An Executive Director is a full-time member of the board who also runs part of the business. They combine board duties with an executive job, so they both help govern the company and deliver results in their area. The role is common in Indian companies where owners and senior leaders sit on the board. A good executive director delivers the numbers for their portfolio, brings ground truth into the boardroom, keeps their area compliant, and helps the board make decisions grounded in how the business actually runs.
Key responsibilities
- Run the business unit or functions in their charge, and deliver their revenue, cost and quality targets.
- Contribute to board decisions on strategy, budgets and major investments.
- Bring an accurate operating picture of their area into the boardroom.
- Turn board decisions into plans and action within their portfolio.
- Oversee risk, controls and compliance for the functions they run.
- Build and lead the senior team in their area, and manage succession.
- Represent the company to customers, partners and regulators as needed.
- Serve on board committees where their expertise is required.
- Declare interests and manage the overlap between their board and executive roles.
- Report the performance of their portfolio to the board and the managing director.
Requirements
- MBA or a strong professional background
- Understanding of directors' duties under the Companies Act
- A Director Identification Number is required to be appointed
- 15+ years in senior leadership, with a record of running a business or function
KRAs and KPIs for a Executive Director
Key result areas for the appraisal form, each with a KPI you can measure every month or quarter.
| Key result area | How to measure it |
|---|---|
| Portfolio results | Revenue, cost and quality targets for the portfolio met for the year |
| Board contribution | Board and committee duties fulfilled with full attendance |
| Execution | Board-approved plans in the portfolio delivered on schedule |
| Compliance | No major compliance failures in the functions under charge |
| Team strength | Key roles in the portfolio filled and retained above target |
Skills and tools
Tools used day to day: Board meeting papers, BI dashboards, Financial statements, MS Excel, Board portal software.
Reporting line and career path
Next roles: Managing Director, Chief Executive Officer
Interview questions for a Executive Director
- How do you balance your board duties with the pressure of running a business unit?
- How do you bring bad news from your area into the boardroom honestly?
- How do you keep your executive interests from clouding your board judgement?
- Walk me through a major decision you drove both as an executive and as a director.
- How do you handle a board decision that will hurt your own portfolio in the short term?
- What are your duties under the Companies Act as an executive director?
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What does an executive director do?
An executive director is a full-time board member who also runs part of the business. They combine board duties, setting direction and overseeing the company, with an executive job delivering results in their portfolio. They bring an accurate operating picture into the boardroom and turn board decisions into action in the area they run.
What is the difference between an executive director and a non-executive director?
An executive director is a full-time employee who runs part of the business as well as sitting on the board. A non-executive director only sits on the board, brings outside perspective and oversight, and is not involved in daily management. Executive directors know the business deeply, while non-executive directors add independence.
Who does an executive director report to?
As a director, an executive director answers to the board and shareholders. As an executive, they usually report to the managing director or chief executive for their portfolio. This dual role means they must separate their governance duty to the whole company from their executive interest in their own area.