Is a VP Higher Than a COO?

Is a VP higher than a COO is our main topic for this section. What is the difference between the two positions? How relevant are they in a company? Read on to find out. 

Is a VP Higher Than a COO?

A VP is the highest position in a company’s structure after the CEO. A COO, on the other hand, is the highest managerial position in a company, just after the CEO. A VP can be in charge of many operational areas in a company, while a COO focuses solely on operations.

Although both positions are in charge of different functions, they still encompass much of the same tasks. Both are responsible for strategic planning, execution, and management of all areas in their respective departments. While it may seem like there is little difference between the responsibilities of a COO and a VP, there are significant differences when it comes to reporting structure and compensation.

The Difference – Is a VP Higher Than a COO?

Reporting Structure

While the reporting structure is not always the same amongst every company, in general VPs usually report to CEOs, while COOs report to VPS. The chart below shows this relationship in different companies.

Pay Grade

Pay grades for VPs and COOs tend to be very similar until you reach upper management levels within the companies. In most companies, only top executives have pay grades that exceed 10 million dollars or more per year. 

In general, pay grades for VPs and COOs usually range from 6 to 10 million dollars per year. If you want to know more about pay grades for various positions within a company check out our article on How Much Money Do CEOs Make?

How Relevant Are They in a Company?

Although the differences between a COO and a VP are significant, many companies do not have a VP or a COO. A company’s structure may consist of a CEO, and EVP (executive VP), SVP (senior VP), and VPs with no COOs. 

A COO position is often created in larger companies with multiple operations in different departments or companies with operations in different areas. A company’s size, industry, and overall objectives are all factors in determining if they require a COO.

How Much Do a VP and COO Make?

A VP and a COO both make a significant amount of money. They make more than the average American household. This is because of the increased responsibility and workload required to carry out their duties.

According to a report by Business Insider, a COO makes an average of $1.2 million a year, while a VP makes an average of $1.4 million a year. The report also shows that the average household income in the United States is about $61,000 per year.

To Conclude

Although both a VP and a COO have important roles within a company, they are vastly different positions. A COO is responsible for carrying out the day-to-day operations of a company, while a VP is in charge of many different departments in a company. A VP can be in charge of marketing, finance, operations, and so on. 

In most cases, VP’s report to the CEO while COOs report to VP’s. Although their roles are very similar, VPs and COOs have different responsibilities and compensation grades.