Every career needs a north star — a guiding light showing you how to get from point A to B. You can’t get anywhere if you don’t know where you’re going, and in more challenging moments, this guidance helps you focus and stay on track.
Finding your professional north star means pinpointing your dream job. And if you’re debating the pros and cons of a director versus vice president (VP) role, you’re on the right track to finding this light.
Understanding what these professionals do and how people typically gain these roles will determine how you plan out your professional career.
What's a VP?
A VP is a high-level senior executive who oversees the day-to-day operations of a broad division and implements the company's vision, policies, and goals.
If an organization only has one VP, this person oversees the entire organization’s operations. But most companies have a VP for each division, like growth, legal, or sales.
And larger companies with varying levels of decision-making power may have several high-level VP roles and job titles, like an executive VP, senior VP, and assistant or associate VP.
Because VPs are responsible for their division’s success, they’re inextricably linked to revenue and budgeting concerns. If their jurisdiction doesn’t do well, this could have drastic consequences for the company as a whole, not to mention the viability of their team and their personal position.
Regarding corporate hierarchy, VPs typically report to C-suite executives and presidents and are often on the board of directors.
What’s a VP's job?
While a VP’s job specifics vary depending on the company's size and needs, here are some common responsibilities across small startups or large multinationals:
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Lead others: A VP presides over their jurisdiction, but they can't be everywhere at once. Instead, they motivate directors and senior managers to effectively manage their employees.
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Keep up with market trends: VPs must be in tune with market risks and opportunities. They’re usually highly creative and seek out innovation because new technologies and trends drive improvements in organizational processes.
Likewise, they’re open to adapting to constantly changing management preferences.
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Oversee strategizing: As the person handling the operation of an entire division or organization, VPs constantly review, question, and reformulate strategies to make sure everything’s implemented properly and benefits the organization’s overall goals.
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Foster company culture: As an important face of the company, a VP must lead by example and embrace the company culture. Their positive or toxic leadership traits, behavior, and work style set the tone for everyone else in the organization.
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Review finances: VPs are responsible for the financial soundness of their jurisdiction. They constantly check in on budgets, cost control reports, and estimates to ensure their department hits financial targets.
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Share progress: A VP is typically in charge of communicating performance reports and metrics to other board of directors members and stakeholders.
What's a director-level position?
A director is a senior management professional who oversees the day-to-day operations of a specific department or vertical and ensures that employees carry out the VP’s directives.
They’re more on the ground than VPs, directly managing other managers and team leaders and relaying important information, such as project progress or roadblocks, to VPs.
Regarding corporate hierarchy, directors typically work directly under VPs.
What do directors do?
Here are a few common responsibilities most directors take on:
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Spot talent: A healthy department is as successful as its employees. Directors often pinpoint talent in employees or help with recruitment to create a robust department filled with motivated and skilled individuals.
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Collaborate: Directors must work with employees of all levels, like managers, and C-suite executives, so the ability to communicate and motivate is key.
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Delegate: Depending on the department’s size, directors may work with several senior and general managers. They need to delegate effectively to ensure everyone understands expectations and meets deadlines.
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Make departmental decisions: As upper management and a team leader, directors often transform the CEO and VP’s goals into strategy and process. Their decisions about new policies, initiatives, and staffing decisions are the lifeline of a department's success.
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Advocate: Depending on the business, directors may sit in on board meetings to communicate their department’s needs and performance. This requires them to be both a strong communicator and active listener who can take constructive criticism and turn it into action.
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Promote company cohesion: Although their work is department-focused, a successful director understands where they fit into the rest of the organization.
They communicate with other directors and departments to avoid information silos, miscommunications, and poor organizational performance.
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Budget: Some directors are in charge of their department’s budget. They’ll work hard to meet the VP's financial expectations and make recommendations on resource allotment, staffing, and projects to keep finances in line.
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Express company culture: As the face of their department, a director must embody the company culture. Their behavior and communication and leadership styles trickle down to the rest of the staff.
5 differences between director and VP roles
While directors and VPs share some responsibilities, like expressing the company culture and communicating expectations to other leadership professionals, here are five key differences between these roles:
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Positional power: A VP is second or third in the chain of command, a leadership role that allows them to make company-wide decisions. A director is a rung down the ladder and has the power to make department-specific decisions.
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Superiors: A VP reports directly to the CEO and may also work with a CFO or COO. A director works with the VP, keeping them updated on department progress and requesting approval for influential decisions.
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Financial responsibility: VPs oversee their jurisdiction’s budget and work strategically to expand profits for stakeholders. Directors might manage their department’s budget and assist the VP to increase financial efficiencies.
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Education: VPs and directors usually start their careers with a bachelor's degree in a study related to their career field, like business administration, recruitment, or marketing.
While many climb the ladder with years of experience, an MBA, MS in management and leadership, or related degree can help you stand out from other candidates.
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Strategy: A VP holistically understands the company, its goals, and how each department contributes to the organization, while a director understands the inner workings of their department and motivates managers to meet goals that contribute to the department's well-being.
Average pay: director versus VP salary
According to the Bureau of Labor Statistics (BLS), senior-level managers (like directors and VPs) are among the highest-paid workers in the U.S. But their salaries are difficult to pin down because they vary greatly depending on the industry, location, and company.
According to BLS, the median annual salary is $98,980, and the top 10% earned more than $208,000 in 2021.
In addition to an annual salary, senior-level management typically get stock options and performance bonuses. And it’s common for them to have access to expense accounts, company cars, and other business memberships.
For a more in-depth understanding of salary differences, try researching the salaries of executive positions and VP-level jobs in your chosen industry and area.
Move on up
Corporate jargon can get confusing fast. But understanding the duties of management-level positions in your industry will ensure you’re making a well-informed plan to climb the ladder and attain a job you love.
If you’re interested in learning the differences between a director versus vice president role in your industry or at your current company, consider reaching out to employees holding these roles or chat with your human resources department to inquire about each role’s job description and qualifications.
This research will give you a better understanding of what you need to do to land one of these roles.
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