Managing Director (MD) vs. Executive Director (ED)

This may be a dumb question but please excuse my ignorance. What is the difference between an Executive Director and Managing Director?

Difference between Executive Director and Managing Director

In the United States an Executive Director is most commonly equivalent to a Senior Vice President. Therefore it is the step before reaching Managing Director.

In Europe an Executive Director is the equivalent of a Senior Managing Director.

This point is well explained by user @fedor, a private equity associate:

fedor - Private Equity Associate:

ED is the same thing as a Senior MD, which puts him right below Group Heads. I'd say he can get you an interview or even a super day if he wants to but I don't think he could get you an offer. Maybe at a smaller firm, it would be possible, but not a large bank.

However, each bank has its own structure so you need to research each individual rank to determine where their position falls on the hierarchy.

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Comments (39)

Mar 31, 2007

there is none. Goldman has executive managing directors and partner managing directors. Most firms just have Managing Directors though

Mar 31, 2007

executive director at GS is assumed to be VP..

Mar 31, 2007

At UBS - Exec Director is the level before MD, similar to senior vp at other banks.

Mar 31, 2007

There is a difference between Executive Director and Executive Managing Director. Executive Director is the same thing as a Senior Vice President and it is the position before reaching Managing Director.

GS has Executive Managing Directors and they are Managing Directors but they are not Partner Managing Directors.

EMDs at Goldman take home between $1.5 and $3 million a year. Goldman PMDs take in over $7 million per year

May 7, 2013
JambaMan:

There is a difference between Executive Director and Executive Managing Director. Executive Director is the same thing as a Senior Vice President and it is the position before reaching Managing Director.

GS has Executive Managing Directors and they are Managing Directors but they are not Partner Managing Directors.

EMDs at Goldman take home between $1.5 and $3 million a year. Goldman PMDs take in over $7 million per year

what about these numbers now post lehman?

Apr 1, 2007

Anybody know the difference at Morgan Stanley?

May 7, 2013

ED is the same thing as a Senior MD, which puts him right below Group Heads. I'd say he can get you an interview or even a super day if he wants to but I don't think he could get you an offer. Maybe at a smaller firm it would be possible, but not a large bank.

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Best Response
May 7, 2013

fedor is an idiot. ED is above a VP, but below an MD. to refresh:

analyst -> associate -> VP -> ED/SVP -> MD

as with most answers, it all depends. however, whereas an analyst's / associate's BAD opinion can keep you out (i.e. - "thought the guy was a douche. we shouldn't bring him in."), their opinions don't have as much pull when trying to bring guys in. although the negative review of an ED/MD can definitely keep one out, their positive review on a potential candidate has a lot more pull. so to answer your question, as long you haven't pissed anyone else below / above the ED, and he likes you and is WILLING TO GO TO BAT for you, you should have a good shot.

good luck.

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May 7, 2013

Thanks guys for your input.

KICKIN ASS AND TAKING NAMES

May 7, 2013

fishbeancake = correct
fedor = not correct

May 7, 2013

No need to call me an idiot before you do some research buddy:

http://www.wallstreetoasis.com/forums/md-vs-execut...
If you are on the US system, an ED is (as you correctly noted) right below an MD and is technically an equivalent of SVP. "ED" however, is not a very common term for an SVP in the US, therefore I assumed he was talking about the "English" system, where the ranks are Analyst -> Associate -> Senior Associate -> VP -> Associate Director -> Division Director -> Executive Director, i.e. DD = MD and ED = Senior MD. Lots of non-US banks are on this system so I don't think it's too unreasonable to assume that's what the OP was talking about.

May 7, 2013
fedor:

If you are on the US system, an ED is (as you correctly noted) right below an MD and is technically an equivalent of SVP. "ED" however, is not a very common term for an SVP in the US, therefore I assumed he was talking about the "English" system, where the ranks are Analyst -> Associate -> Senior Associate -> VP -> Associate Director -> Division Director -> Executive Director, i.e. DD = MD and ED = Senior MD. Lots of non-US banks are on this system so I don't think it's too unreasonable to assume that's what the OP was talking about.

That's odd. I know JPM, MS and C have ED as a part of their ranks.

I'm making it up as I go along.

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May 7, 2013

It is a 'mezzanine' level between VP and MD.

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May 7, 2013

Executive Director can also mean responsible officer in a firm which makes them big swinging dicks

otherwise just SVP

at GS they have VP / ED's - b/c GS has a weird 6 year ED track

Apr 1, 2007

I believe Morgan Stanley just has the usual Analyst, Associate, Vice President or Executive Director and Managing Directors.

May 7, 2013

Think so. Probably some sort of quant I'm guessing.

Some firms use the titles Director/ Executive Director past VP rather than SVP/MD. So this guy could be a bigwig, especially if he's in at least his 40s.

May 7, 2013

Their level is Executive Director, there job is to be the Credit Analyst sitting on a trading desk, don't think of analyst as the title think of it as their job, kind of like an "Equity Analyst" at a hedge fund might be a 40 year old Vice President.

May 7, 2013

Edit: Agree with above poster. "Analyst" could mean research, too. The issue here though is that there's less of a research focus in credit than equity and more of a component to pricing odd features of bonds or correlation products. A lot of it is a numbers game revolving around risk and yield, and credit research typically splits a lot of the attention from the traders with the chief economist's office making predictions about treasury action.

The desk analyst and credit titles says pretty clearly that he sits with the corporate bond or CDS traders. And Executive Director says he's probably not a 22-year-old kid. Analyst could mean research or it could mean quant analytics. If it were equity, I'd lean towards research; being credit, I'm kinda leaning a little more towards it meaning he's a quant. Really, it could be either one.

May 7, 2013

Analyst--> associate --> vp --> ED/principal/director --> MD

May 7, 2013

this is a new one to me. Sad state of affairs and a good indicator of "title inflation" when they put the word Executive in your name and you're stuck right in middle management.

May 7, 2013

Uh, you're not even considered "management" until you make MD / group head

May 7, 2013
Solidarity:

Uh, you're not even considered "management" until you make MD / group head

You know what I meant. But yes, that further demonstrates my point

May 7, 2013

any idea what pay is like at those levels? 200 and 80-100%?

May 7, 2013

Depends where you are. If youre talking at a BB in IBD, easily 200 and 80-100%

May 7, 2013

Directors / principals take in a minimum of $500k at BB's

May 7, 2013

Usually ED's are a step below an MD and can be depending on the firm either above or equal to an SVP. ED's can have a fair amount of pull, however I've noticed that there are two distinct groups: he first are those who are still on the !D track and are rising stats, the others make enough money and bring in enough business that they are worth keeping, but not enough to make it to MD.

May 7, 2013

EDs are junior to MDs. It is not unusual for an ED to be "Head of [insert non-core industry here] Investment Banking", but that's typically merely an indication that there isn't much coverage of that particular industry at the bank and thus there is no MD who covers it. Such roles do not mean they are "group / division heads", just that they are the most senior banker for a particular industry. For example, the Industrials group at JPM covers a wide variety of sub-sectors; if they didn't perform many deals in Capital Goods (making this up), it wouldn't be strange to see an ED with the title "Head of Capital Goods Investment Banking". That ED, however, would not be "group head of Industrials".

May 7, 2013

Got the answer. Ignore

May 7, 2013

Analyst (1-3)
Associate (1-3)
Vice President (1-3)
Assistant Director / Senior Vice President / Executive Director
Managing Director

Different EDs will have different clout, but they are all nearly MDs...

May 7, 2013

It is all simply a matter of the firm / group / individual, not their position. Don't mistake a title for power, as that's not always the case.

May 7, 2013

Don't think anyone but the CEO could guarantee you anything really. I had an MD strongly vouch for me and I didn't even get a first round.

May 7, 2013
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