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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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Stephen Wamaitha eNotes educator | Certified Educator

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Some companies change CEO’s after every one or two years because of poor results. You will realize that such companies are those in transition because of resignation by the previous boss. After a CEO quits, it takes time for the firm to find a replacement. A CEO’s job is very demanding since he or she is in charge of major decisions within the organization. They have to understand the firm’s culture, workforce, and objectives if they want to be good at the job. Achieving such a feat takes time. That’s why outsider CEOs don’t last very long.

Many companies prefer choosing a CEO from within. General Electric is an example of such a company. The firm’s CEOs are chosen from within and always last for at least 10 years.

A company may also switch CEOs because of changing needs. We live at a time where technology plays a big role in how businesses are run. Firms have to stay on top of things if they want to beat the competition. Some CEOs prefer to do things in a certain way because...

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