When COO is the right title — and when it isn't

Executive overview

Titles must match the actual scope of a role, not just its general function. Calling someone a COO when they need daily direction and sit outside the leadership team inflates the title and misrepresents the role.

The right title depends on five factors: strategic contribution, management overhead required, P&L responsibility, leadership team participation, and compensation level.

The COO title belongs to someone who leads independently — not someone who needs a to-do list.

The five factors that determine the right title

• Strategic insight the person brings to the role
• How much management time they require from you
• Whether they sit at the leadership team level
• Their P&L responsibility
• Compensation level

Director of operations vs. COO

• Needs daily direction and project delegation: director or operations manager, not COO
• Not participating in leadership team meetings
• Compensation around $120K signals a mid-level operational role
• Doing solid execution work doesn't make the title appropriate

What a true COO looks like

• Brings prior company-building experience and genuine strategic input
• Operates independently once given a 12-month remit
• You learn from them, not the other way around
• Compensation around $300K reflects the seniority
• Leads the company alongside or on behalf of the CEO