Commercial directors · the role
What does a commercial director do?
The short answer · updated
A commercial director owns how a business makes money from its market. They set the commercial strategy, pricing and terms, lead key accounts and partnerships, and align sales, marketing and finance behind one revenue plan. They report commercial performance to the chief executive and board, and are accountable for growing revenue at a healthy margin.
What a commercial director is responsible for
The Institute of Directors describes commercial directors as responsible for planning, developing and implementing commercial strategies to support business development and growth. Its list of day-to-day duties includes understanding market conditions, working with the marketing director on campaigns, analysing the performance of commercial activities, setting financial targets, and building partnerships with key stakeholders.
In practice the job usually covers the areas below. The mix changes with the business: in a manufacturer the commercial director may spend more time on large customer contracts and pricing; in a software or services company more on the go-to-market plan and partnerships.
- Commercial strategy: which markets, customers and channels to pursue, and which to drop.
- Pricing and terms: price lists, discount rules, payment terms and the margin the business will accept.
- Key accounts and contracts: the largest customers, major bids and the contract terms that go with them.
- Partnerships: distributors, resellers, suppliers and alliances that bring in revenue.
- The revenue plan: targets and budgets set with finance, and the plan sales and marketing deliver against.
- Reporting: commercial performance to the chief executive and board, measured on revenue, margin and customer metrics.
Who a commercial director reports to
Most commercial directors report to the chief executive or managing director. In a larger company with a chief commercial officer, a commercial director may run a division, region or channel and report to the CCO.
Heads of sales, marketing, account management and sometimes customer success or procurement report into the commercial director. The finance director is the commercial director’s closest peer: pricing, discounts and targets all need finance’s view. Our page on what a finance director does covers that side.
Some commercial directors sit on the board. A director appointed to the board carries the general duties of a company director, which Companies House sets out, including promoting the success of the company and exercising reasonable care, skill and diligence.
Commercial director vs sales director vs CCO
A sales director runs the sales team to a number: hiring and managing salespeople, the pipeline, forecasting and closing. The focus is winning business now.
A commercial director owns the wider question of how the business makes money: pricing, terms, key accounts, partnerships and the plan that sales and marketing work to. A sales director often reports to them.
A chief commercial officer (CCO) leads the whole commercial function at executive-committee level, usually across several commercial directors, divisions or markets. In a smaller business the commercial director covers the CCO’s work and the title is a matter of choice.
Some businesses use a chief revenue officer instead, who owns sales, marketing and customer success as one revenue engine. Our commercial director recruitment page compares the roles side by side.
Skills, qualifications and the rules they work within
The IoD says the role needs an entrepreneurial mindset with strong financial and marketing skills, and many years of commercial experience across disciplines. There is no single required qualification. Two professional frameworks are useful signals.
On the sales side, the Institute of Sales Professionals’ Sales Capability Framework sets out the knowledge, skills and behaviours for sales roles, and is the basis of Ofqual’s specification for sales qualifications. On the marketing side, CIM describes Chartered Marketer status as the mark of a professionally certified marketer.
A commercial director sets prices and negotiates with customers, suppliers and sometimes competitors, so competition law matters. The CMA’s short guide to competition law risk warns that price-fixing, bid-rigging and market sharing can lead to heavy fines for the business and disqualification for directors, and that not knowing is no excuse.
Payment terms are part of the job too. The rules on late commercial payments let a business claim interest and debt recovery costs when another business pays late, and say when a payment counts as late.
Fractional, interim and part-time commercial directors vs permanent
A permanent commercial director suits a business where pricing, key accounts and the revenue plan need an owner every day.
A fractional commercial leader works a set number of days a week or month: setting the commercial strategy, fixing pricing, building the revenue plan, then leaving the team to run it. It suits growing companies that need senior commercial judgement but not five days of it. See fractional CCO roles.
An interim works full-time for a fixed period, often covering a vacancy or turning round a sales team that has missed its number; see interim sales director roles. A part-time commercial director is usually employed on reduced hours.
Where a fractional or interim leader works through their own limited company, the off-payroll working rules (IR35) may apply. Status turns on how the engagement runs in practice, and a medium or large client makes the determination. Our IR35 guide sets out the tests.
What a commercial director earns
Pay depends on the size of the business, the sector, location, whether the role sits on the board and how much of the package is tied to revenue. Commercial directors are usually paid a base salary with a bonus; fractional and interim commercial leaders a day rate.
Our commercial director salary page sets out base, bonus and day rates, each figure with its source. For the neighbouring role, see sales director salary.
How to hire a commercial director
Write the brief around the decisions the person will own: pricing, key accounts, partnerships, the revenue plan. If the need is mainly running a sales team to a number, a sales director may be the better fit; if it is the whole revenue engine, look at a chief revenue officer.
Commercial titles vary widely between companies, so test the work, not the title. The CIPD’s guidance on selection methods favours clear, structured processes and skill-based assessment tasks. Give candidates a real pricing or key-account problem from your business.
We recruit permanent, interim, fractional, part-time and temporary commercial leaders. To hire a commercial director, see our commercial director recruitment page; every brief gets a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
Questions people ask
Is a commercial director the same as a sales director?
No. A sales director runs the sales team to a number. A commercial director owns pricing, terms, key accounts, partnerships and the revenue plan that sales and marketing deliver against, and a sales director often reports to them.
What is the difference between a commercial director and a CCO?
A chief commercial officer leads the whole commercial function at executive-committee level, often over several commercial directors. In a smaller business one person does both jobs and the title is a matter of choice. See fractional CCO roles.
Is a commercial director a board-level role?
Sometimes. Many commercial directors sit on the leadership team without a board seat. One appointed to the board carries a director’s legal duties, set out by Companies House.
What qualifications does a commercial director need?
None is required. The IoD points to a business, marketing or finance degree and many years of commercial experience. Professional standing from the Institute of Sales Professionals or CIM is a useful signal.
How does a commercial director work with the finance director?
Closely. The commercial director sets prices, discounts and targets; the finance director tests them against margin, cash and the budget. See what a finance director does.
How much does it cost to hire a commercial director?
A permanent commercial director is paid a base salary, usually with a bonus; a fractional or interim one a day rate. Our commercial director salary page sets out pay with sources. On every shortlist we set out each candidate’s pay or day rate.
How do I hire a commercial director?
Write the brief around the decisions they will own, choose permanent, fractional, interim or part-time, and test candidates on a real pricing or key-account problem. Our commercial director recruitment page sets out the process; we send a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
