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Why do some Organizations seem to have a new CEO every year or two whereas others have...

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user2203634 | eNotes Newbie

Posted June 25, 2013 at 7:51 AM via web

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Why do some Organizations seem to have a new CEO every year or two whereas others have top leaders who stay with the company for many years (Jack Welch's twenty year stint at GE)? 

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readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted June 25, 2013 at 4:04 PM (Answer #1)

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There are many reasons why some CEOs stay for a long time at one company and other leave or get replaced rather quickly. In light of this, let me give you a few reasons. 

First, some CEOs stay at one company for a long time, because they are the best at what they do and they want to be there. Jack Welch is a perfect example. He is a legend. Steve Job is another example. When came back to Apple, he built it into a new company and it soared. In light of this, there was no way he was leaving. This can be said of Jamie Diamond as well. 

Second, as you know, the times change. For this reason, markets and people change as well. For this reason, CEOs need to adapt. If they do not adapt (or better yet lead the way), then often times a company will bring in someone else to meet the new set of needs. Marissa Meyer from Yahoo is an example. For example, she just bought Tumblr.

Third, at times CEOs do not perform well and there is a vote of no confidence. When this happens, there is a turn over. 

In short, there is one point that essentially matters. CEO need to produce and if they do not, they are let go. 

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