Top Executives face a “Never-Before” Environment
Are top executives underpaid in this “never-before” moment?
The title, ‘Chief Executive Officer,’ while 100 years old, been used meaningfully since 1960s. It gained traction when globalization gave rise to truly multi-national, complex organizations that are common today.
In the last 60 years, CEO’s have faced several challenging macro environments. While the business environment kept changing, the workplace of 2020 still looked a lot like the workplace in 1960.
Then the pandemic hit. And everything changed. Not least the “office”.
Now:
Interest rates are climbing. Yet, inflation refuses to taper.
Economic growth rate is tapering. Yet, labor market continues to be tight.
People are in jobs. But, not in offices.
AI offers huge promises in the future. Yet, the current reality is somber.
Cloud was supposed to reduce the cost of everything tech. Now, cloud costs are high and tough to walk away from.
Everything is digital. The risk of cyber-attacks is rising.
Conversations on culture and people are becoming more nuanced in a polarizing society.
People, technology, politics, climate, health, the economy — everything — is in a state of a ‘generational’ shift.
A turbulent “Never-Before” environment
Eight years ago in 2014, the management publication strategy + business published an article, “The Lives and Times of the CEO
It examined CEO’s role from across four moments in time: 1914, 1964, 2014, 2040 — with the one in 2040 — a prognosis of how the role of the CEO would look like in 2040.
The strategy + business article summary of the future role of a CEO:
Even flatter organization| Mastery of technology|
2022 already looks more complex than 2040!
The ‘never-before’ environment has meant that the job of CEOs and their teams, have never been more crucial. Choices made today are likely to have lasting impact on companies. These choices are not easy.
Bet on ‘fully remote’ and come across as ‘cool’ or insist on ‘hybrid’ and come across as ‘yesterday?’
Raise prices and risk losing share or recommend margin compression as employee costs soar?
Invest in your brand so that you can raise prices or invest in offshoring so that you can reduce costs?
Build new products for the future in an uncertain environment or double down on current strengths?
Chase the promise of technology or see through the hype?
Build a company on the idea of long-term careers for employees or accept the reality of a mobile workforce?
Stay grounded or become a visionary?
These are just few of the many challenges that top executives face in a world that is relentlessly producing ‘never-before’ scenarios.
Top executives have always been paid to make difficult choices. That is not new.
What is ‘new’ is that every aspect of their work is now undergoing a massive upheaval. Everything is a big question mark.
The value of leaders has never been higher.
The question is: Are leaders being paid enough for the value they create?
Are top executives underpaid in this “never-before” moment?
What do you think?
