Stephen H Baum Leadership

Many big company CEOs (disproportionate among operating companies) are portrayed in the press as driven by selfish pursuit of power and money at everyone else’s expense, while a few are reported as (temporary) stewards of the enterprise.

Many small business owners are shown to be checkbook managers, pinching pennies when a game-changing investment opportunity presents itself.

My own experience in proximity to owners and CEOs (some as private clients, others  as members of Vistage International) leads me to relay these stories for consideration:

–       CEO of an aerospace company being sold to a larger “strategic” buyer sets aside a pool of funds from his own take to reward on the day of the sale all the people at all levels of the company who contributed to the valuation. One executive assistant receives enough to pay cash for a new house.

–       CEO of metals company swapping out one private equity owner for others diminishes his own take to ensure bonuses for the lower level people and creates a new incentive system to ensure more recent hires have a stake in the future

–       Majority owner of an information systems company writes out checks (largely his own money) for millions of dollars investing in IT for the future and makes acquisitions of distressed competitors during the terrible 2008 – 2010 economy

–       Owner with track record of involvement in all aspects of the business now with new private equity capital injected makes several senior hires and re-structures the business so as to make it less dependent on his personal involvement; positions three people as candidates as his successor

–       Owner of an asset management company takes a salary cut along with the rest of the senior team until company fortunes turn around and elevates the roles of the next generation; with little financial need to grow the company or take risk, he leads an effort to diversify products, open up new geographies and engage new classes of clients.

Which are the anomalies: those in the press or companies like these/

Do you see yourself in any of these stories? Could you?

That’s just my view. What’s yours?

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