Managing Director Job Description Guide

A Managing Director job description does a different job from every other one a business writes. Nobody at this level is scanning it to decide whether they can do the work — they can. They are reading it to work out whether the business knows what it wants, and whether the role carries the authority to deliver it.

Which means a comprehensive list of responsibilities is close to worthless, and frequently counterproductive. This article sets out what belongs in an MD job description, what to leave out, and the two sections that separate a document strong candidates respond to from one they skim past.

What strong candidates are reading for

Before the structure, it helps to know what an experienced MD is actually looking for when they open the document.

Has this business decided what it wants? A description listing twenty responsibilities in no particular order reads as a board that has not agreed a priority. Candidates infer, usually correctly, that the first year will be spent establishing what the job is.

What authority comes with it? Specifically: what can be decided without going back to the owner or the board. This is the single most consequential thing in the document and the one most often absent.

Why is the role open? Growth, retirement, a departure, a founder stepping back, a business in difficulty. Each implies a very different job, and candidates will work it out at interview anyway.

Is this honest? Descriptions that describe an untroubled business needing steady stewardship are rarely accurate, and experienced candidates discount them accordingly.

The structure that works

Six sections, in this order, and the whole document should fit on two pages.

1. The business, briefly and factually. Sector, revenue, headcount, sites, ownership structure, how it makes money. Four or five sentences. Resist the marketing copy — candidates at this level want to know what they would be running, not how exciting it is.

2. Why the role exists now. The genuine reason. “Our founder is stepping back from day-to-day management after twenty-two years” tells a candidate more than a paragraph about strategic ambition, and it attracts people who want that specific challenge.

3. What must be different in twelve to twenty-four months. Three outcomes at most, stated concretely. This is the section that does the most work and the one most descriptions omit entirely.

4. Scope and authority. Reporting line, direct reports, P&L responsibility, approval limits, and whether the appointee will be a registered director. Be specific about numbers where you can.

5. Experience that genuinely matters. Three or four requirements, each with a reason. Not a list of twelve attributes that describes nobody.

6. Package and process. Range, structure, location expectation, and how many stages the process has. Withholding the range at this level filters out strong candidates rather than weak ones.

The outcomes section, in detail

This is where most descriptions fail, so it is worth being precise about what good looks like.

The right-hand column is harder to write because it requires the board to agree what it actually wants. That is the point. A description that cannot state three concrete outcomes is telling you the brief is not settled, and no amount of polish fixes that.

The statutory question

State plainly whether the appointee will be a registered company director. Many MD job descriptions do not, and it is a material term.

The office of director is defined at section 250 of the Companies Act 2006 and arises from formal appointment and filing at Companies House. A registered director carries statutory duties — including the duty at section 172 to promote the success of the company — along with personal exposure. GOV.UK sets out what that involves.

Note also that someone acting as a director without formal appointment may be treated as a de facto director in any event. Being explicit in the description, and settling directors’ and officers’ cover before the offer, avoids an awkward conversation later.

What to leave out

The exhaustive responsibility list. Anyone qualified for the role knows an MD is accountable for performance, people and strategy. Twenty bullet points restating that signals a document written by committee.

Generic personal qualities. Dynamic, visionary, results-driven, hands-on. These describe every candidate and filter nobody. If a personal quality genuinely matters — comfort with a founder still present, tolerance for a family shareholder group — say that specifically instead.

Inflated qualification requirements. Requiring an MBA or a specific degree narrows the field without improving it, and can be indirectly discriminatory if it cannot be justified as relevant to the role. Guidance on fair recruitment practice is published by Acas.

“Other duties as required.” Standard in junior descriptions and faintly absurd at MD level, where the whole business is the remit.

Marketing language about the company. Exciting, fast-paced, market-leading. Candidates at this level are assessing the business, and unsupported superlatives make them more sceptical rather than less.

Title: Managing Director or CEO?

Worth settling before the document is written, because it determines who applies. Managing Director is the traditional British title and remains standard in owner-managed businesses, SMEs and UK subsidiaries. Chief Executive predominates in listed companies, investor-backed businesses and groups.

The practical question is what your target candidate market will read as the right level. Someone currently running a £30m UK manufacturer will see Managing Director as a comparable move; someone from a PE-backed group may read it as a step down. Neither title is more senior in itself, and the Institute of Directors publishes useful material for those new to either role.

Frequently asked questions

How long should a Managing Director job description be?

Two pages. Longer documents dilute the sections that matter — why the role exists, what must change, and what authority it carries — behind responsibility lists that add nothing for a candidate at this level.

Should the salary range be included?

Yes at MD level. Withholding it filters out strong candidates, who have options and will not invest time in an unquantified opportunity, rather than weak ones. A range with the bonus and equity structure indicated is sufficient.

What are the most important sections?

Why the role exists now, what must be different in twelve to twenty-four months, and what the appointee can decide without returning to the board. Most descriptions omit at least two of the three.

Should the description say the appointee will be a company director?

Yes. Registration at Companies House brings statutory duties and personal exposure, and it is a material term of the appointment. Confirm the position and the directors’ and officers’ cover before making an offer.

Is a job description still necessary if a search firm is running the process?

Yes, though its purpose changes. It becomes the document that forces the board to agree what it wants before candidates are approached — which is the most valuable thing it does, regardless of who sends it out.

Adrian Lawrence

Adrian Lawrence FCA is the founder of Exec Capital. He is a Chartered Accountant and holds an ICAEW practising certificate in his own name with over 25 years’ experience operating at C-suite level, Adrian brings direct executive experience to senior search. His background spans private equity-backed businesses, owner-managed companies, and listed environments, giving Exec Capital a practitioner’s understanding of what leadership hires actually require.