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This question is about what an engineering director does and engineering director.
The vice president of engineering is the role above the director of engineering. The director of the engineering role is typically where a person first starts to manage managers; where a vice president of engineering is where a person starts to manage the company as a whole.
The main hierarchical difference between these roles is that a director of engineering is thinking operationally. They coordinate and execute multiple efforts within a larger strategic goal. Typically they have more control over the "how," but the "why" has already been decided for them.
Meanwhile, the vice president of engineering is thinking strategically. In our level definition, VPs are strategic. They help define the why and what an organization will achieve.
Thinking of the VP of engineering as a progression from the director, the VP spends their time thinking about "what" and "why" rather than "how," while the directors of engineering may be spending their time operationally on how to build and maintain a significant piece of application real estate.
Both roles are part of the discussion around company and department strategy since it affects the direction of their organization, but the VP is ultimately responsible for the decision that is made.
Typically a director of engineering will report to the VP of engineering, while the VP of engineering will report to the chief technology officer (CTO).

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