How to Become a Vice President of a Company

The role of CEO often takes center stage, but corporate leadership is more than just the role of CEO.

As McKinsey and many others have noted, corporate leadership is more a collaborative act of teamwork than anything else. One position that stands out as particularly influential is that of vice president.

Excelling as a VP requires a combination of strategic vision, leadership skills, and a deep understanding of the core business. Becoming a VP often requires years of experience, a strong network of professional contacts, and the ability to deliver results consistently and at scale.

Those who achieve this position are often handsomely compensated, with the median salary for VPs in New York City being $284,000, according to Glassdoor. Considering that the average executive VP earns an even more impressive $413,000, it’s no wonder many wonder: how to become a vice president of a company?

Join me as I teach you what it takes to become a VP, the differences between different VP roles, and specific steps you can take to set yourself on a path to becoming a VP.

Who is the vice president?

A vice president is a senior manager who oversees a number of business departments and functions, supporting the CEO, president, and other senior management.

VPs can be third in command or they can serve just below the C-suite, reporting to the CEO or other senior executives such as the COO, CFO, or CMO. In addition to managing large business portfolios and numerous direct and indirect reports, VPs work closely with other senior leaders to develop and execute strategies that align with company goals.

Executive Vice President vs. Senior Vice President

The difference between an executive vice president (EVP) and a senior vice president (SVP) is primarily in the scope of their responsibilities and position in the organizational hierarchy. An EVP often has a broader, more strategic role across the company and may oversee multiple departments or divisions while reporting directly to the CEO or president.

In contrast, an SVP typically focuses on leading a specific business area or function. SVPs often report to EVPs or other senior leaders in the C-suite. Not all organizations have both roles, and one EVP may be another’s SVP in every other respect except title. As companies get larger and their operations become more complex, they are more likely to find it meaningful to differentiate between these roles.

Director vs Vice President

A director typically oversees a specific department or function and focuses on implementing strategy and managing day-to-day operations with their teams. In terms of direct reports, directors can manage a group of anywhere from a few employees to over a hundred, depending on the size and complexity of the organization.

Compared to a director, a vice president has a broader scope of responsibilities, including strategic planning and high-level decision-making. It is typical for vice presidents to have many directors and other managers as direct reports.

There is no requirement for companies to have directors or vice presidents, but it is typical for a corporation to have both roles. Smaller organizations may have directors reporting directly to the CEO, while larger companies often implement a multi-level structure with directors and vice presidents to increase management efficiency and career paths.

What does a company vice president do?

The specific roles and responsibilities that a vice president assumes vary greatly by company and industry. In general, vice presidents support executives in achieving the company’s strategic goals, and they do so by leading departments and managing business functions.

Vice presidents are responsible for implementing the company’s vision and mission and often lead core corporate functions such as legal, product development, sales, or marketing. A typical day for a vice president involves working with senior management to stay on top of things, reviewing performance metrics and implementing changes in their department, and supporting management in making strategic decisions.

While not every organization has a VP, most mid-sized and large companies do. As of this writing, there are over 10,000 VP job openings on LinkedIn. Some organizations, such as many in the financial industry, use the VP title in unique ways, and investment banking is well-known for having a large number of VPs in their ranks.

What is the average salary of a vice president?

According to ZipRecruiter estimates, the average salary for a Vice President (VP) in the United States ranges from $100,000 to $360,000 depending on the industry, location and experience.

For example, according to Glassdoor, the median salary for a vice president in New York City is $284,000 per year. Executive vice presidents typically earn even more, with a median salary of about $413,000 per year.

A VP salary is influenced by several factors, including the size and profitability of the company, the industry, and the individual’s experience and work history. For example, VPs at pharmaceutical and biotech companies can earn an average of $100,000 more than those in the IT sector.

Location also plays a significant role, with VPs in large cities like New York and San Francisco typically earning more than their counterparts in smaller markets. In addition, stock options, bonuses, and other incentives can significantly increase a VP’s total compensation package, with each VP having significant latitude to negotiate his or her own compensation package and also influence his or her profits through performance.

What steps do you need to take to become a vice president?

Becoming a VP requires a combination of experience, education, and strategic career planning. As with any top-tier position, competition for VP roles can be fierce. Many VPs start out by achieving success in less demanding management positions and then gradually move up the ranks, demonstrating the ability to drive results and effectively lead teams.

Zippia estimates that it takes 9 to 10 years of experience after earning a degree to reach the position of vice president. The time required to become a vice president reflects both the demands of the position and the need to develop a deep understanding of the industry and how to lead an organization to success. To move from director to vice president, it is necessary not only to develop strong leadership skills but also to demonstrate them through action. Results speak louder than qualifications, and vice president candidates will succeed by fostering excellence in both their work and the people who report to them.

1. Gain the necessary experience

Industry experience and a history of success in previous positions are essential to making it to the VP position. This step takes time, dedication, and a willingness to take on challenging projects that showcase your capabilities. Nurture excellence in yourself and those who work with you consistently, and seek opportunities to contribute to the strategic thinking and decision-making of management.

2. Develop your leadership skills

Exceptional leadership skills are essential for a VP. This role involves not only administering and managing teams, but also inspiring and motivating them to perform at their best. Consider taking leadership courses, seeking feedback from peers and mentors, and continually working on your communication and decision-making skills. Remember; nothing grows in comfort. Seek out challenges and grow as a leader by overcoming them.

3. Build a strong professional network

Networking is essential for career advancement at every level, especially at the very top. VPs, like many other C-suite executives, are routinely hired across companies and industries, and many will find their first VP position at a completely different company than the one where they learned the skills they needed to succeed in the role. Build strong relationships with other professionals by attending industry events, participating in professional organizations, and connecting with mentors who can provide guidance and support.

Summary

Vice presidents are particularly influential positions in modern corporations, and achieving the position requires a commitment to excellence, strategic career planning, leadership skills, and a solid network of professional contacts. Achieving the career goal of becoming a vice president comes with its share of monetary and intangible rewards, and many use the position as a springboard to becoming CEOs.