"Why Does My Company’s CEO Keep Disappearing?"
02/27/24 Edition Stephen Says Column



Dear Stephen,

I work for a contract furniture manufacturer with HQ in North Carolina. We’re a subsidiary of an overseas company. Every couple of years it seems we have a new President or CEO.

I’m in sales, and we have a great product, but the leadership keeps changing. The vibe is that the leadership is quitting the job, not being asked to leave. Which is not a comfortable feeling.

Every time there is a change, we have a “town hall meeting” where ownership explains to us that they’ve decided to make changes in strategy. With that comes a new CEO. Consistently, the CEOs come from one of the major manufacturers, you know – someone unhappy at #MillerKnoll, #Steelcase… you get the idea. Most of these executives were no more than an RVP at another company, and in one case one of them ran a dealership.

This effects my own future because I can’t seem to form a relationship with a boss that’s going to stay with our company. What do you think my future is under these circumstances and what’s your suggestion – should I move on or stay put? I generally like my job; I just want to be able to have one boss that’s going to stay.

Signed,

Will They Stay or Will They Go
Dear Will They,

Yes, there have been a lot of new leadership changes lately. #BossDesign has a new President. I’ve noticed #Designtex has been looking for leadership for a while. At #Arper, the CEO just quit. I believe #HATCollective has an opening in leadership. So, yeah. I guess you’re right, there’s a lot of movement, or open holes, at the top of our industry. Typically, the longer a leadership position remains open, the more revenue a company loses. At least that’s what I’m told.

You are correct when you say that it is concerning when a CEO quits rather than being asked to leave. However, I’m also aware of many times the owners deciding they’ve hired the wrong person, and they simply want to make a change. So, the reasons for a CEO leaving are usually 50/50.

One thing I think we have all noticed is that when new leadership comes into some of these small companies, they usually have a pedigree from one of the major manufacturers. As you said, even though there is very little comparison to working at a major company like #Steelcase to any company under 50 million dollars.

It could be that the executives who quit find it difficult to leave the umbrella of one of the major manufacturers, along with all the cushy trappings and go to a smaller manufacturer where the title of CEO or President is simply a glorified VP of Sales. It may be a fast way for a company to fill a position, but it does long term damage because no one ever seems to last.

As far as your question and your position – if it were me, I would stay put. Chaos in the company makes every steady employee more valuable to the owners. You should consider throwing your hat into the ring with your bosses and ask them to consider promoting internally. Just by stepping up and saying you are ready for more responsibility will be viewed as a positive by the owners, even if you not ready. So even if you don’t get the CEO job you may get a promotion. Frankly, that’s where a lot of these small companies miss the mark when it comes to hiring leadership. I often recommend to someone coming to us for a search that they consider promoting internally, or hire from a similar revenue size company, especially when it’s 50 million or under.

Hiring a big shot from MillerKnoll is not going to help your company. It is only helping that individual with a grand new elevated title!

Hope that helps.

Best,
Stephen

Stephen Viscusi is the CEO of www.viscusigroup.com, an executive search firm that specializes in the interior furnishings industry. Hires made through The Viscusi Group are guaranteed a one-year free replacement. Please share your story or comment on this article and send your workplace questions to stephen@viscusigroup.com. Or give us a call at 212-979-5700 x 101.

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