Hiring a CEO

[lighthazard]

So I'm the owner of a few companies, and I know for a fact that I'm not good at being a CEO. Is it advised to hire one? How does it work during company decision? If I wanted to fire him, how would that work? Is "Founder" a title higher than a CEO?

[jmeijers]

If you own the stock, you own the CEO. Dead simple.

But hiring a CEO can be tricky. A friend of mine hired one for his business and the guy cost a fortune, while all he could do was pretend to be really busy without actually doing anything. The had to fire him and lost a great deal of money.

I would always opt for a certain type of security in the contract, a bonus system which is activated when he realizes extra profit for example. Keep the salary low, and the bonus high (if he delivers!).

[Iamnotsatisfied]

It's pretty complex.... you can just hire a CEO to manage your business and then fire them whenever you want to...plus as mentioned before... the good ones are pretty expensive.

Best to just stick with a senior manager and give him a relaxed contract where you don't pay the earth in redundancy when you fire them or get your ass sued off... for unfair dismissal.... however finding the right one for the right price is pretty hard.

[lighthazard]

Thanks a lot guys! Answered my question exactly as I needed.

I think I'll hire someone on contract that if the company does well, he'll do well.

[chrisro]

Absolutely make it a performance based deal. Other things to keep in mind
1. Does he/she have direct industry experience
2. See a written strategy before hiring
3. Make sure the person managment style aligns with your current staff
4. Go with your gut feeling
5. keep close reigns until he/she proves that they are a fit

[melittle]

Yes surely you should appoint a well experienced CEO for the welfare of your organizations and also be very careful in appointing a managing head as you are going to transfer your decision power to some other person therefore make a sound contract with all necessary terms and conditions and fix a probationary period to judge his/her performance.

Good Luck

[Cell.Phone]

No - but I have seen the opposite. It depends on the circumstances of the two families. The managers of the two units can put so many roadblocks in place that no one would succeed. But if they are willing to have someone there and are willing to work within that environment than it will. No one controls that other that the CEOs and the individual management.

[Ryan Heatherson]

The Chief Executive Officer is one of the riskiest and yet most important of any company's hires. A CEO will not only oversee business operations but set the whole tone, philosophy and long-term strategy for the business. If you are looking to hire a CEO for your business, follow these important steps to make the right choice.

Instructions:
Step 1
Make a phased plan. Hiring a CEO is unlike hiring any other position, including other top-level management positions. Start your CEO hunt as early as possible so you don't end up becoming desperate for a hire as time goes on. Make a plan that includes time for headhunting, an interview phase and a probationary period where the CEO temporarily takes the reins.

Step 2
Look within your pool of associates and colleagues. No matter what the industry or business model, the one quality that is essential in a CEO is trustworthiness. Having some business and personal experience with a potential CEO hire will take you a long way in being able to make the right decision, so look to your own set of contacts for a candidate.

Step 3
Hire the candidate as an interim COO. One very effective business practice in hiring CEOs is to hire a Chief Operating Officer to take over day-to-day management of the business' operations. This interim period gives founders and board members an opportunity to see a candidate in action on a basic management level. Also, hiring someone as a COO and not CEO will minimize potential damage that a bad candidate can do to the company.

Step 4
Make an attractive but reasonable offer. Finding an excellent CEO candidate certainly warrants a very good compensation package. However, it's important to still negotiate and set limits on compensation so that the CEO comes into the company with an amount of respect for the business, its principles and the company's financial boundaries.

[shonuff]

Ryan's answer is the one that is most comprehensive and agreeable imo.

[wemakeiteasy]

You're best bet is to look for an executive recruitment firm that will do all the screening for you. Hiring a CEO is a BIG decision, and it's something worth waiting months for.

[bizalchemist]

I've worked with hundreds of different CEO's. Here's a few suggestions. First of all, CEO indicates the top executive position in a company. Chairman of the board, or having controlling votes on a board could technically be higher since the CEO will answer to the board. Having said that, here are a few suggestions that might work as well.

I've seen the CEO role in different comanies vary substantially. There really isn't a clearly defined, agreed upon CEO role. In some companies, CEO would be more like a title, spokesperson, or public figure role. In some companies it's a very hands on, day to day management role. Often the rest of the management team can be structured to compensate for and support the CEO's capabilities. For example, a CEO who is very creative, but doesn't do well with detail orientation might surround him/herself with detail oriented people to run major areas of the company. On the other hand a technical, detail oriented CEO that doesn't necesarily do well in front of the group might bring in a high energy, motivating VP of sales who is more high profile publically. Define your roles clearly to compensate for your percieved weaknesses.

[olivia751]

Hello,

For hiring a CEO i got a good information and tips here. Some qualities are i think important in a CEO:
1.A SUCCESSFUL CEO must have the desire or will to achieve, the energy, and the intellect.

2.THE CEO must dare to make decisions, especially the hard ones, whether they concern layoffs or pay cuts, or other difficult strategic decisions.

3.LEADERS with integrity are consistent, willing to trust others, and care about their employees' well-being.

4.THE CEO must have a dream, a mission, a strategic intent, a vision and he must be able to articulate that vision.


Regards,
Olivia

[paulson]

well, If you talk about firing a ceo. It is a board decision. You haven't mentioned what kind of company. It doesn't matter even if you are the founder, It's all about ownership of shares, if you hold a majority of the shares, then you can definitely influence the board decision.