The role of the Chief Executive Officer (CEO) is a noble one and highly sought after in the corporate ecosystem. It’s the most powerful and influential title in business. The CEO controls the biggest organization’s resources (usually) including the paycheck. However, this is often counterbalanced with having the highest exposure to risk-taking and being mainly responsible for the outcomes.
According to a 2017 report by the Economic Policy Institute, CEOs pay has risen much more quickly since the Great Recession of 2008 than for anybody else. Where the regular workers’ pay has fallen flat, CEOs now make an average of 271 times regular workers’ pay. That is on ratio 271:1
Despite how excitingly rewarding the position of CEO is, acting the CEO is the most all-consuming, lonely and stressful thing in business management.
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According to McKinsey’s analysis of the mindset and practices of excellent CEOs, what the CEO controls—the company’s biggest moves — accounts for 45 percent of a company’s performance. The analysis further shows that just three in five newly appointed CEOs live up to performance expectations in their first 18 months on the job. The high standards and broad expectations of directors, shareholders, customers, and employees create an environment of relentless scrutiny in which one move can dramatically make or derail an accomplished career.
Analysis of how CEOs spend their time shows CEOs average 60 hours per week — though some CEOs probably put in more than the average. On average, CEOs spent 9.7 hours per weekday, making 48.5 hours a week; around 4 hours per weekend day; and 2.4 hours per vacation day, all of which adds up to 62.5 hours a week. Further analysis reveals that about 75% of CEO time is scheduled in advance, with 25% spontaneous. The specifics for hours spent are as follows:
25% on people and relationships
25% on functional and business unit reviews
16% on organization and culture
21% on strategy
3% on professional development
4% on mergers and acquisitions
4% on operating plans
Surprisingly, 1% on crisis management
Regarding how CEOs communicate, study found 61% of CEOs’ communication is face-to-face; 24% is electronic, and 15% good old-fashioned phone and letters.
Michael Porter who led a Harvard Business school study of 27 CEOs across a wide range of industries remarks “Time is indeed the scarcest resource of the CEOs”.