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Executive Director job description

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.

DetailFor this role
DepartmentLeadership and Senior Management
LevelLeadership
Reports toManaging Director
Direct reportsBusiness Unit Heads, Functional Heads
Experience15+ 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 areaHow to measure it
Portfolio resultsRevenue, cost and quality targets for the portfolio met for the year
Board contributionBoard and committee duties fulfilled with full attendance
ExecutionBoard-approved plans in the portfolio delivered on schedule
ComplianceNo major compliance failures in the functions under charge
Team strengthKey roles in the portfolio filled and retained above target

Skills and tools

Business leadershipCorporate governanceP and L ownershipStrategic judgementRisk oversightStakeholder managementDecision makingTeam building

Tools used day to day: Board meeting papers, BI dashboards, Financial statements, MS Excel, Board portal software.

Reporting line and career path

Managing DirectorExecutive DirectorBusiness Unit HeadsFunctional Heads
Moves up from: Business Head, Chief Operating Officer, Functional Head
Next roles: Managing Director, Chief Executive Officer

Interview questions for a Executive Director

  1. How do you balance your board duties with the pressure of running a business unit?
  2. How do you bring bad news from your area into the boardroom honestly?
  3. How do you keep your executive interests from clouding your board judgement?
  4. Walk me through a major decision you drove both as an executive and as a director.
  5. How do you handle a board decision that will hurt your own portfolio in the short term?
  6. What are your duties under the Companies Act as an executive director?

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Frequently asked questions

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.