There are
various factors that impact the length of time a CEO stays with a company. One factor is
performance. If a company isnt profitable or if the stock doesnt perform as well as anticipated,
the CEO may be replaced to try to turn around the companys performance. Sometimes a new group of
people is elected to the Board of Directors who has a very different vision for the company.
This new vision may not match the strengths of the current CEO. In other instances, the new
board members may want to choose a CEO with whom they are more comfortable. These factors could
lead to the departure of the current CEO.
The competition of the marketplace
also plays a role. Sometimes, the CEO gets an offer from another firm that is too good to
reject. In a competitive marketplace, talented people are highly demanded and often switch jobs
when offered a very lucrative compensation package.
There are instances
where the CEO stays for many years. For example, if the company is doing well, and...
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