Well, first, I couldn’t bypass the title of this one ……. then, found myself reading each and every blurb plus picture in the list. According to the content, they “scoured the world” for their top list presented. Funny, they missed me AND maybe missed you as well? If you have some time, cool read.
Excerpt: Yes, CEOs are chosen for their grit, determination, vision, smarts, competence, and professionalism.
But it doesn’t hurt when they’re also endowed with a certain, well, je ne sais quoi.
So who has the most of that?
We’ve scoured the world to find the CEOs who are tops in this special attribute.
And of course, as anyone who has ever been attracted to anyone knows, it ain’t just about looks. So we’ve also factored in power, fashion sense and presentation, altruism, and ambition.
Read full article and list via The Sexiest CEOs Alive! – Business Insider.
Important read for all CEOs now and those who want to be CEOs. It is the today reality check of who you must be and what you must do in order to fulfill this CEO role.
Excerpt: … common thinking patterns need to be tossed out the window, right from the start, in order to be the chief executive of a company. Many strong leaders are priceless assets to teams but aren’t CEO material if they hold any of the following commonly-held beliefs.
Read full article via 7 Beliefs of a Leader Who Will Never Be CEO – Forbes.
Small business of-interest and takeaway advisory for when the “time makes sense” to choose inside legal versus private firms. Legal
Excerpt: Obviously, private law firms have terrific lawyers who provide great service to business. And obviously the two trends described above are not uniform or universal. But there is a crisis in private firms, at the same time that there has been increasing growth, prestige and pay for general counsel and other inside lawyers. (For a more extended treatment of the views, go here.) No report on the the “uncertain times” facing “big law” should ignore the rise of inside counsel. Boards, CEOs and other business leaders have increasingly recognized that hiring outstanding general counsel and other inside lawyers is vital to the twin goals of the global corporation: high performance with high integrity.
Read full article via The Rise of the General Counsel — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
Small business of-interest with some how-to included. Study reviews case history to arrive at a probable and suggested solution. Compensation
Excerpt: In the paper, Executive Superstars, Peer Groups and Over-Compensation — Cause, Effect and Solution, which was recently made publicly available on SSRN, we develop a pragmatic approach to understanding the run-up in CEO compensation over the past several decades. Rather than looking to markets or captured boards for the explanation, we argue that the actual mechanical process of peer benchmarking by which pay is set is the cause of the present controversy. From this perspective, we present what we believe will be an effective solution; additionally and collaterally, some interesting lessons about executive recruitment, particularly the CEO “superstar” culture, may be gleaned from our findings. We thank the Investor Responsibility Research Center Institute, which has long funded compensation research, for their financial support and helpful assistance in the development of this paper.
The piece makes a contribution to the executive compensation literature as it offers a novel explanation for the perpetual rise in CEO pay and suggests a significantly different solution to the compensation controversy.
Read full article via Executive Superstars, Peer Groups and Over-Compensation — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
Small business and board of diretors need-to-know and takeaways. Where are we, accomplishments, needs, news-to-watch.
Excerpt: Corporate directors have adjusted to significant changes in the governance environment during the last year. On the regulatory front, the Securities and Exchange Commission (SEC) continues to implement new rules stemming from the Dodd-Frank Act, causing companies to rethink and react. The voice of shareholders has never been louder, pressuring companies to adopt structural governance changes by submitting proposals on board declassification, splitting CEO and board chair roles, and majority voting. Shareholder “say on pay” votes moved into a second year with some companies uncertain about how to respond based on their voting results. Plus, more companies had their shareholders withhold approval on their “say on pay” votes, maintaining the pressure on compensation committees.
In the summer of 2012, 860 public company directors responded to PwC’s 2012 Annual Corporate Directors Survey. Of those directors, 70% serve on the boards of companies with more than $1 billion in annual revenue. As a result, the survey’s findings reflect the practices and boardroom perspectives of many of today’s world-class companies. We structured the survey to provide pragmatic feedback directors can use to assess and improve performance in areas that are “top of mind” to today’s boards. The survey shows directors are clearly making progress and enhancing their practices. At the same time, directors acknowledge the numerous challenges they still face. The following are the highlights:
Read full article via Board Evolution: Progress Made, Yet Challenges Persist — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
This looks like it will be a good series on governance and how did we get here from there. For all leadership and managment
Excerpt: I’m going to offer some views on how multiple causes, all of them well-intentioned, came together to create a “broken culture,” and I suspect the lessons from the financial sector can be applied more widely. For me, it all seems to be a story of unintended consequences, which makes our current situation more of a tragedy than a conspiracy.
The factors that caused the decline in the financial sector, which I will further elaborate on throughout this series, include:
The rise of the “shareholder value” movement
Changes in the nature of finance sector
The impact of benchmarking approaches
The rise of stock based compensation plans
The rise of the “superstar” CEO
Why regulation on it’s own doesn’t work
Enterprises as educational institutions
How it all fits together
Read full article in series via The Rise of “Shareholder Value” and Its Unintended Consequences | Governance Center Blog.
Download podcast here — I think there are takeaways on both sides in this podcast. A heads up for CEOs and a guide for when is the right time to change leadership and the reasonable whys.
Excerpt introduction: In an audio INSIGHT in Person interview, Associate Professor of Finance Camelia Kuhnen explores how industry conditions factor into that decision.
Studying the patterns behind CEO firings, Kuhnen found that CEOs were most likely to be replaced when the firm faltered relative to industry peers or when the entire industry sputtered.
Kuhnen noted that there are some circumstances that would increase the likelihood of a firm retaining its CEO during an industry downturn — most notably, when he or she holds unparalleled knowledge of the firm. But moving on might be best when the CEO’s “firm-specific skills” fail to match the organization’s needs in a shifting industry climate, she said.
“For the majority of firms, a CEO is replaceable in the sense that what he knows about the firm, someone else new can learn in not too long a time,” Kuhnen said during the interview.
Download podcast here via What happens to the CEO? : Associate Professor Camelia Kuhnen explains when and why new leadership might be a firm’s best decision – Kellogg School of Management.
What will CEOs be like 20 years from now? CEO.com went ahead and asked them. After surveying thousands of students aspiring to the C-suite, we found out what they think about education, entrepreneurship, management style, and social media, as well as what their top priorities really are. Meet the CEOs of tomorrow.
Recommended read. I loved this article. As you know, I enjoy studies of “why we do what we do” and “why we are who we are” 🙂 There is a bit of an amusing note here ….. I pride myself on being able to frequently determine motivations and like behavior mechanisms in others — but then at the same time, and here is the amusing part, I will also occasionally totally miss the obvious that everyone else immediately hears or recognizes while I am delving deeper into the whys. Leadership, management and communications
Excerpt: Our view of the world is powered by personal algorithms: observing how all of the component pieces (and people) that make up our personal social system interact, and looking for patterns to predict what will happen next. When systems behave linearly and react immediately, we tend to be fairly accurate with our forecasts. This is why toddlers love discovering light switches: cause and effect are immediate. The child flips the switch, and on goes the light. But our predictive power plummets when there is a time delay or non-linearity, as in the case of a CEO who delivers better-than-expected earnings only to wonder at a drop in the stock price.
Enter my co-author, MIT-trained strategist and engineer Juan Carlos Méndez-García, who consults with both start-ups and Fortune 500 companies. According to Méndez-García, one of the best models for making sense of a non-linear world is the S-curve, the model we have used to understand the diffusion of disruptive innovations, and which he and I speculate can be used to understand personal disruption — the necessary pivots in our own career paths.
In complex systems like a business (or a brain), cause and effect may not always be as clear as the relationship between the light switch and the light bulb.
Read full article via Throw Your Life a Curve – Whitney Johnson – Harvard Business Review.
Information technology for startups and the small businesses. IT is not just for the big guys. Good read.
Excerpt: As he sits across the table from his chief executive (CEO), the head of information technology (IT) for a small startup senses immediately this isn’t going to be the usual Monday morning review. “Our little garage operation is doing unbelievably well,” the CEO says, arching his fingers. “A year ago, no one knew we existed. But we’re already a multimillion-dollar company and we are going to be a multibillion-dollar company soon. I want an IT capability that will be the envy of the Fortune 100. We need large-scale, industrial-strength IT, and we need it immediately. I need you to tell me how we are going to do it.”
How do you build a world-class IT operation for a small company that is quickly turning into a major global enterprise?
Read full article via 4 Steps for World-Class IT Any Company Can Apply – CNBC.
Entrepreneurs and small business owners use takeaways from peers. Cash management.
Excerpt: The Inc. 500 list came out last week, and we were proud to again make the list. We also were pleased to see that Avondale was in the vast majority of Inc. 500 companies that financed their growth through personal savings and cash flow. You might be somewhat surprised, in this era of venture capital, angel investing, and crowd funding, that many of the fastest-growing companies didn’t raise a single cent from outside sources.
Every year, Inc. surveys the CEOs of the Inc. 500. Here’s what they said about funding their growth:
Read full article via Financing Tricks from Inc. 500 Companies | Inc. 5000.
Great points in this article. Your obligations to compliance for your businesses’ sake and where that stops and today takes over — what is different in this scene today? Leadership and management
Excerpt: Compliance training undoubtedly works in one way. That is to ensure the right ‘boxes are ticked’ should something go awry. Rather as support for the ‘we followed orders’ defence. This is often the situation found in the wake of some non-compliant act that had led to an unwanted occurrence. The question as to whether the organisation has followed statutory or relevant professional body compliance training guidelines is often the first one raised. Organisations produce their records of compliance training to be used as part of the defence.
In other words compliance training is useful as a back-stop to help avoid financial sanctions and, at worst, the CEO or Chairman ending up in front of a jury and possibly in prison (in the past a number have). Sometimes this ‘defensive compliance’ strategy works. Increasingly it doesn’t.
But does it actually improve compliance and lower the number of non-compliant acts?
Read full article via Performance.Learning.Productivity. From Charles Jennings
Interesting read — for the aspiring CEOs out there. Why do some get chosen but others who seem to be equally qualified are passed over time and again?
Excerpt: If you ask a group of managers who aspire to the C-suite what it takes to get there, they’ll invariably mention executive presence, but they aren’t always so clear about what it means. Not too long ago I conducted a series of off-the-record interviews with senior executives responsible for executive placement in their organizations. I asked them about the “make or break” factors they consider in making C-suite promotion decisions. Executive presence was one of the handful of decision criteria they cited, but even these experienced executives struggled to define what it is and why one person has it and another doesn’t. In an increasingly diverse world where senior executives are no longer all 6 foot 2 inch tall males who look they were sent from central casting, what does it take to create a commanding executive presence? The right clothes? A firm handshake? Those matter, but they don’t tell the whole story.
Read full article via De-Constructing Executive Presence – John Beeson – Harvard Business Review.
For every CEO and other leadership, a reminder (we have lots of the ‘reminders’ in this information age we now live within). Yet, this is a good read!
Excerpt: Specifically, firms using multiple modes to obtain new resources and skills were 46 percent more likely to survive over a five-year period than those using only alliances, 26 percent more likely than those using only M&A, and 12 percent more likely than those using only internal development.
Read full article via When to Build, Borrow or Buy: Why CEOs should Watch Their Portfolio of Growth Modes – LDRLB.
Recommended listen for all leadership and management.
Excerpt: Most people instinctively avoid conflict, but as Margaret Heffernan shows us, good disagreement is central to progress. She illustrates (sometimes counterintuitively) how the best partners aren’t echo chambers — and how great research teams, relationships and businesses allow people to deeply disagree.
The former CEO of five businesses, Margaret Heffernan explores the all-too-human thought patterns — like conflict avoidance and selective blindness — that lead managers and organizations astray
Listen and watch video of this Ted Talk via Margaret Heffernan: Dare to disagree | Video on TED.com#.UCnkG0ASNVJ.email.