Posts tagged Most Successful CEO’s

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The 1$ Deal!

If you are not willing to risk the unusual, you will have to settle for the ordinary.” – Jim Rohn

Have you heard of some Management jerks settling for a 1$ salary at the position of CEO? What is this deal exactly? How does one settle for nothing?

 

The game isn’t that simple. Most of the CEO’s like the Iacocca’s or Vikram Pundit settle for a low remuneration with a purpose. The purpose is their strategy, vision and confidence to transform the future of a company. People ask what the heck, they must be getting something else. No, my dear! It’s a deal! 1$ it is. Yes, but there is something grand if they achieve their target. That will wipe off whatever they did not get and make them millionaires of even billionaires.

 

What is this deal?

 

At this position of a CEO, you are at the center of CHANGE. You impact the change, you shape the CHANGE, and you OWN the change. Usually when the company isn’t doing well or the economy is tough, sales are low, margins are low, and the market isn’t moving the company cannot afford high salaries. The CEO is the first person to demonstrate what is good for the company by taking a pay cut. This is followed by implementation of other cuts. The CEO role models the whole deal which is in favor of the company and its shareholders. The CEO then unveils his plan for the year, 2 years, or a decade depending on the strategy to take the company out of mess or to its next level. Some of the measures are, Cutting costs, increasing sales, finding high demand high margin products, reducing the cycle time, selling old assets, selling loss making or not moving products, restructuring the organization. Once these measures are in place the company starts making progress. With close monitoring, increased targets, motivation, role changes the whole environment becomes competitive. All the engines start firing in same direction. Profits slowly begin to rise. The profits are re invested partially. The CEO sets the tone for change and then waits for the sown seeds to harvest. Like the seasons of Life, not all seeds harvest. Some fall on the rock, while others are killed by the sun, yet there are those that give bumper crop. The CEO’s job is to cash in on these bumper crops, yet he never ignores those that yield low.

 

With the whole Vision transforming through that Decision and turning it in to Action backed by Motivation translating in to Evolution. The company soon rises to match up with the competition and eventually surpasses the competition.

 What is the CEO’s reward for doing all this?

 High salary? Profit sharing?

 Well, the highest reward is the Credibility that he creates by virtue of transforming the organizations fortune. This is exactly what Lee Iacocca did with Chrysler.

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