director – Someone who directs the business, a manager of business in the UK

(Pronounced dai-rek-tuh)

To remember what director means use the following mnemonic:

Just like a film director directs and manages a film, a director of a company directs and manages a business.

Just like a film director directs and manages a film, a director of a company directs and manages a business

There are many different organisational structures in the world of business. If it is a small Ltd company, quite often the only shareholder will also be the managing director, and the organisational chart will be as follows:

There are many different organisational structures in the world of business. If it is a small Ltd company, quite often the only shareholder will also be the managing director, and the organisational chart will be as follows

For large companies, there can be a number of directors. They can either all have no share of ownership, some can have shares while others don’t, or all of them can have shares. The organisational chart could look like the following:

For large companies, there can be a number of directors. They can either all have no share of ownership, some can have shares while others don’t, or all of them can have shares. The organisational chart can look like the following

When a company gets very large, then in order to attract the right people the title of director is used more commonly. It is then the word used before director which establishes their role in the company

In the USA, the structures of companies are very similar, but the titles are different, for example:

Managing Director (MD) = Chief Executive Officer (CEO)

Divisional Manager = Vice President

(Note: CEOs do exist in large companies in the UK, but are far less frequent)

A large American company’s organisational structure could look like the following:

A large American company’s organisational structure could look like the following