|  | |||||||
| ||||||||
There is an old maxim that goes something like this: Be careful what you wish for; you may get it. Somehow that is what CEOs must think after they have attained their plum title.
Of course, most CEOs receive an enormous amount of compensation. Millions of dollars per year is almost commonplace. But fair is fair, says George Fisher, chairman and CEO of Eastman Kodak. "We all should be compensated based on competitive issues," says Fisher. "If you want a world-class shortstop, you pay. The good news is that many CEOs are getting well-compensated for really good performance."
And good performance is really what it's all about. The CEO's job is not like any other because he or she is responsible for every decision every single person in the company makes, whether or not the CEO even knew it was being made. And there's no school to teach them about how to shoulder this responsibility. Although leadership training courses are increasingly popular, CEOs must learn most of their lessons while in the corner office, as every shareholder, employee, and analyst watches.
Naturally, with that visibility and that sort of sink-or-swim training, it is no wonder that many CEOs do, in fact, sink. Research shows that almost half of all CEOs are replaced within five years.
And the CEO is watched for more than just job performance, too. If one is a smoker, fellow board members suggest quitting. Insurance premiums rise. Stockholders and employees worry.
Health concerns go deeper than this though, and for very good reason. If a CEO were to suddenly die or become incapacitated, the company would be left without its leader. So at what point does the health problem get announced to the company and when, if at all, is it announced to the media?
With all eyes on the CEO at all times, one would imagine that vacations are a welcome breath of fresh air and privacy. Not so. "In an era of harsher competition, intensified customer focus and highly demanding boards, few chief executives believe they can afford to take lengthy vacations - and most are reluctant to delegate responsibilities when they finally do escape the corner office," writes business columnist Joann S. Lublin.
Peter I. Bijur, chairman and CEO of Texaco, never takes more than a long weekend. Eastman Kodak's George Fisher has not taken a real vacation since he joined in 1993. And former Sunbeam CEO Albert J. Dunlap just didn't take his vacation last year. "I live to work," he explained. Of course, "Chainsaw Al" was fired in June of 1998. Looks like he finally got that much-needed break from the office.
First published in Passages, Johnson Smith Knisely, (1998 All rights reserved.)
|
