Why do the CEO's of companies change so often?

Question

I'm really interested in becoming the CEO/Chairman/President of a major corporation when I get older. However, if I do become one, I dont want someone else to take my job, because thats a big position. So why do people let their position as a CEO go? The only reasons I can think of is: Being fired, and dying. And who is the person in charge of firing and hiring?

Also, If you can, please give me any advice you have for someone one like me who wants to become an entreprenuer and eventually own a large corporation. Such as, what kind of education I will need, what kind of degree I should get, any good business colleges/schools, etc.... I'm still in high school, but I want to have a good future so if you have any advice I would very much appreciate it.

Answer 1

Major corporations are typically publicly traded, and thus there is a large emphasis on them to not only make a profit, but increase their profit each term.

CEOs who cannot meet the market's requirements are typically let go.

Additionally, many CEOs specialize in dealing with a certain aspect of a corporation or strategy. For example, some CEOs are great for companies that have just gone public, but can't handle a mature organization.

Corporations have something called the Board of Directors. They are essentially a group of people elected by shareholders to govern the corporation. The Board is responsible for hiring and firing the CEO.

If you're interested in working as a CEO for a large corporation, you will generally need to be heavily educated. Although there may be some exceptions, look towards getting your Masters of Business Administration from a reputable school.

As an undergraduate in university, business/economics/finance will generally get you pointed in the right way.

Answer 2

A CEO is the right man for the job, for a few years, then you get fired. You typically don't have enough control to keep from getting fired.

Answer 3

The CEO has tremendous responsibility and is costing the employer a lot of money. If they make even the smallest mistake, they can easily lose their jobs.

Answer 4

Mostly because the Board of Directors don't like what's happening with stock value of the company. Many board members will have millions of dollars worth of company stock.