Everything about being a CEO

After CEO of Apple Tim Cook announced that he is proudly gay, the top questions in the minds fired again. What is the CEO's affects to the companies? Do they give the real character to the companies? Does CEO make all the important decisions? In this article, I will try to answer these questions.



There is not a doubt that CEOs are unique people with a lot of responsibilities. Chief Executive Officer in other word CEO of the company is not just responsible for success or failure. They have to live like CEO, think like CEO, eat like CEO. They are not a normal human beings anymore. If you cheated your wife (husband) (We hope you didn't do this) and got caught, what will happen? Probably your wife (husband) will kick your ass, divorce procedure etc. But if CEO of one company did the same thing like you, it will affect all the company; Stock value will drop, bad-reputation will grow even board members can ask him or her to resign. Because CEO's work starts not in the office, outside of the office. They are the face of the company and they are the best advertiser. If the company use the CEO card correctly, there is nothing best than free advertisement.

Statistically, if people make special bond with CEO of the company they are using company's product more. That's why there are people who are Apple-fans. They made a bond with Steve Jobs and now they continue their loyalty with Tim Cook, how many technology companies can survive after that much product fail? That's why Apple is special.

Mostly people think the founder of the company and CEO is the same thing. Yes, usually they are starting as CEO but sometimes things are not going well and board can ask from founder to leave. Steve Jobs got fired from his own company; Apple and then came back by the request of the board again. Bill Gates is not the CEO of Microsoft. He stepped down from the CEO seat 14 years ago. Of course, he still has the most shares of the company but being a owner and CEO is completely different story.

But is it good to be the only one in the company? If the things are going well yes. But if company got in a trouble, shareholders will ask for the head. However, I strongly believe that some CEOs are stronger than the companies. Some CEOs injects their culture to the company and it became Company's mission. Without the Captain the ship doesn't know where to sail the same as the companies with that culture such as Apple and Disney. You can not divide Walt Disney & Disney it is not important that they were the founder of the company. When Blackberry formerly RIM had little trouble, first heads has gone were the co-founders head. The important thing is being the man/woman that directly reflects the character of the company. That's why it is not always helping to bring very famous and successful CEO of another company to the company to achieve success. Because every company has different culture and objectives; like people. Not everyone is fitting each other right? This is the same story.

Perhaps, nobody can be CEO forever. The time come and pass, sometimes they can step down naturally and give the seat of the company to another driver, sometimes they have to leave. In investor's eye, there are just 2 things important;

How they leave? 

If they stepped down with scandals or corruptions, they will lose all their career but company will lost the value for sure. The worst scenario is death of course. Specially unexpectedly just like Total CEO's death in plane crash this month. The companies Euro Exchange shares dropped %2 directly. Of course not all the changes are bad. If they stepped down by their demand or retirement usually the stock does not get hit negatively. 

Who is the next CEO?

The problem is Does the next can fill the place of ex? The importance for the new CEO is that He/She has to fill first to expectation cup for investors and convince them with success. Investors have high expectations and the new CEO's job is hard but not impossible. Sometimes, they already convinced their success and nobody can question them but sometimes the opposite story. Anyway, this is another criteria.

Conclusion

CEOs are the most important element of the company. They are the face and advertiser of the company. Their every move will represent the company and this is obviously very heavy mass for them. Of course they are earning well but in my view they are deserving this. They have rights to make  major decision and they have to take risks sometimes. This decisions can cost them a lot but if they want difference, the difference needs risks.