Why Execs Need Salaries and Parachutes

Why Execs Need Salaries and Parachutes: You’re Risking Your Career.

–“The average turnover for an American CEO is five years. 19% of CEOs remain in position for 10 or more years. About 30% remain in the position for the long term – more than 14 years – which is multiples of almost every other country. The turnover of American CEOs is around 15-17%. Of those that were forced out (no stat on %), about 40% were for ethical lapses.”–PWC

The average person hasn’t the remotest idea how hard you have to work to hold one of those positions – how easy it is to be terminated and how catastrophic those terminations can be for your career.

I’ve largely run my own companies, but even then it’s hard to manage bankers, investors, employees, management, customers, vendors, and cashflow in markets whose fluctuations have little to do with your abilities – but you’re to blame if you can’t get the business to adapt to them anyway.

Most of the time, the ability to adapt your business is something you can control if you generate enough revenue, control enough expenses, produce enough profit, explore new opportunities often and carefully, and preserve enough reserves to survive a year of crisis: pretty much the same for individuals. 😉

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