Comments on: What Is the CEO Average Tenure and Should They Have Term Limits?

By: V V

V V — Wed, 27 Mar 2013 18:10:00 +0000

You miss the point completely. All non-obvious decisions can go either way. They could be right or wrong and have a lot to do with the circumstances that are outside the control of the CEO. The idea of changing the CEO is the same as the idea of changing the President. Some fresh air. We have had a whole lot of CEO’s in recent times who all follow the same mantra! (Focus on share price and layoffs). Time for some fresh air!
The comparison to Professional Sports teams is ludicrous at best and devious at worst. In sports the game is only hours long and the season just a year. They also do not mess around with careers of a large body of people.

By: Mike Myatt

Mike Myatt — Sat, 05 Feb 2011 03:38:00 +0000

In reply to James Strock.

Hi Jim:

Your comment reminds me of one of my favorite quotes: “Leaders who fail to realize the importance of personal accountability will ultimately face the imposed accountability of others.” Thanks for the insights Jim…

By: Mike Myatt

Mike Myatt — Sat, 05 Feb 2011 03:25:00 +0000

In reply to Dan Rockwell. No sense sticking your toe in the water when you can dive right in...Thanks for taking a deeper dive (no pun intended) on the character issue. Well done Dan.

By: Mike Myatt

Mike Myatt — Sat, 05 Feb 2011 03:24:00 +0000

In reply to Dan Collins.

Hi Dan:

Definitely agree with your perspective…I think your comparison to professional sports is a good one as well. Thanks for stopping by Dan.

By: Dan Rockwell

Dan Rockwell — Fri, 04 Feb 2011 19:30:00 +0000

Mike,

I’m a little late to this party. However, I’ll jump in since the water looks fine.

It seems to me that one motivator for term limits is to protect organizations from abusive leaders. The answer isn’t term limits, the answer is character.

We wouldn’t have this conversation if it wasn’t for unethical, manipulative, deceptive, self-centered, egotistical, know-it-all leaders … hmmm, that felt good.

As you indicate, performance is a context sensitive thing. It depends on economic, regulatory, social, and other factors. Through it all, we need persons of character at the wheel.

It’s true that competence is key to performance. But character and competence make for long-term success. (I use success in the broadest of terms)

Well, I’m climbing out of this pool. That felt good!

As always you have my best regards,

Dan

By: James Strock

James Strock — Fri, 04 Feb 2011 18:11:00 +0000

Totally agree with your excellent points, Mike! If a board is doing its job–a big if to be sure these days!–then a CEO will recognize that s/he is always term-limited, based on agreed metrics. Having official term limits can be self-serving approach by a board, to avoid the hard decisions they’re entrusted to make…like any self-serving action, it will end in tears…

By: Dan Collins

Dan Collins — Fri, 04 Feb 2011 17:51:00 +0000

Mike,

Term limits are a lazy leadership concept in my opinion based on the thinking that new will translate immediately into growth or improved performance. There are countless studies, particularly in the area of professional sports team management, that refute this notion and in fact lead one to believe that the reverse is true. Often performance expectations and time lines to achieve those metrics once communicated to,and accepted by the CEO, negate any necessity for term limits. We either achieve or we don’t and we either surpass expectations or don’t. Seems to this simple guy that our term or shelf life, outside of moral and ethical turpitude, should primarily depend on that.

By: Mike Myatt

Mike Myatt — Fri, 04 Feb 2011 17:24:00 +0000

In reply to William Powell. Hi William: Thanks for your astute insights. You are spot-on as usual in pointing out that segregation of duties, responsibilities and authority and prohibit many things problematic with ailing corporations. Thanks for sharing William.

By: Mike Myatt

Mike Myatt — Fri, 04 Feb 2011 17:20:00 +0000

In reply to Tanveer Naseer. Hi Tanveer: I really liked how you stripped away the confusion that often surrounds the concepts of time and accountability. Well done Sir. Thanks for stopping by Tanveer.

By: William Powell

William Powell — Fri, 04 Feb 2011 17:10:00 +0000

I think CEO term limits is an ignorance based concept as well. The bigger problem is giving the CEO too much responsibility and authority. Don’t make the CEO the president and chairman of the board. Diversify those responsibilities.

A recent study has shown that CEOs who have won industry awards average a 20% drop in performance over the subsequent 3-5 years compared to other eligible CEOs for the same award.

The CEOs who won awards and still had consistent high performance were supported by a diverse authority structure. THAT is infinitely more valuable and effective than a token gesture like term limits.