The good news is that many CEOs are getting well-compensated for really good performance. And good performance is really what it's all about. The CEO's job is not like any other because he or she is responsible for every decision every single person in the company makes, whether or not the CEO even knew it was being made. And there's no school to teach them about how to shoulder this responsibility. Although leadership training courses are increasingly popular, CEOs must learn most of their lessons while in the corner office, as every shareholder, employee, and analyst watches.
Research shows that almost half of all CEOs are replaced within five years.
And the CEO is watched for more than just job performance, too. If one is a smoker, fellow board members suggest quitting. Insurance premiums rise. Stockholders and employees worry. Health concerns go deeper than this though, and for very good reason.