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Principal vs managing director

The differences between principals and managing directors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become a principal, becoming a managing director takes usually requires 4-6 years. Additionally, a managing director has an average salary of $129,690, which is higher than the $111,719 average annual salary of a principal.

The top three skills for a principal include CRM, project management and financial services. The most important skills for a managing director are healthcare, portfolio, and business development.

Principal vs managing director overview

PrincipalManaging Director
Yearly salary$111,719$129,690
Hourly rate$53.71$62.35
Growth rate5%6%
Number of jobs84,01581,022
Job satisfaction--
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 68%
Average age4744
Years of experience46

What does a principal do?

A principal is responsible for maintaining the orderliness of the school premises and supervising school operations, enforcing strict safety standards, and reiterating regulatory procedures. Principals' duties also include managing and monitoring school budget and expenses, improving security plans, conducting regular meetings and sharing updates with teachers and other school personnel, creating reports for school funding, and setting academic goals for everyone's compliance. A principal must administer excellent leadership, communication, and decision-making skills to handle major administrative tasks in maintaining the school's growth.

What does a managing director do?

A Managing Director oversees workflow and progress, making sure that all operations align within the company or organization's mission or set of goals. They are responsible for crafting strategies, devising effective business plans, and executing guidelines that would nurture a company's growth, and as well as to be the driving force that would direct employees to the company's objectives. Furthermore, a Managing Director must coordinate with those in a higher position, such as the members of the board.

Principal vs managing director salary

Principals and managing directors have different pay scales, as shown below.

PrincipalManaging Director
Average salary$111,719$129,690
Salary rangeBetween $69,000 And $179,000Between $72,000 And $233,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyKKR & Co. L.P.Paul, Weiss, Rifkind, Wharton & Garrison
Best paying industryProfessionalFinance

Differences between principal and managing director education

There are a few differences between a principal and a managing director in terms of educational background:

PrincipalManaging Director
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 68%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Principal vs managing director demographics

Here are the differences between principals' and managing directors' demographics:

PrincipalManaging Director
Average age4744
Gender ratioMale, 65.6% Female, 34.4%Male, 73.5% Female, 26.5%
Race ratioBlack or African American, 10.9% Unknown, 4.0% Hispanic or Latino, 14.0% Asian, 4.3% White, 66.0% American Indian and Alaska Native, 0.7%Black or African American, 6.1% Unknown, 4.3% Hispanic or Latino, 15.0% Asian, 6.3% White, 67.8% American Indian and Alaska Native, 0.5%
LGBT Percentage16%10%

Differences between principal and managing director duties and responsibilities

Principal example responsibilities.

  • Manage all documentation associate with FMLA, ADA, & DOL requests.
  • Develop schedules, payroll, and manage recruiting, hiring and company standards to ensure customer satisfaction.
  • Launch, continue to manage, and act as primary portfolio manager and trader for boutique investment consulting firm.
  • Manage the RFP process for a new medical plan TPA delivering a savings of almost $1MM in fix costs.
  • Achieve 7-digit annual revenues from start-up in one year by capitalizing on accurate niche market gap and consumer demand identification.
  • Manage all human resource matters, including payroll and benefits administration.
  • Show more

Managing director example responsibilities.

  • Create and manage the social media presence via a festival page on Facebook.
  • Manage all consulting resources and have overall P/L responsibilities for the Atlanta office.
  • Manage the lessee and lessor relationships regarding exchange seat leases with major markets, such as NYSE, AMEX, CBOE.
  • Manage denials and expedite managed care appeals (reimbursement reconsideration).
  • Manage payroll processing for thousands of industrial temporary workers and bill respective clients.
  • Manage the Ketera SaaS relationship for IBM with engagement development and profitability responsibilities.
  • Show more

Principal vs managing director skills

Common principal skills
  • CRM, 7%
  • Project Management, 7%
  • Financial Services, 6%
  • Healthcare, 6%
  • Professional Services, 5%
  • ERP, 5%
Common managing director skills
  • Healthcare, 7%
  • Portfolio, 7%
  • Business Development, 6%
  • Oversight, 6%
  • Project Management, 5%
  • Customer Service, 5%

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