How To Deal With The Weakening Of Power

< p > who is the person in charge here? In the business world, this question needs a clear answer.

In the army, hierarchy is a matter of course.

This is also true in companies, because they are not democratic institutions.

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< p > in the corporate environment, decisions about resources, prices, purchases and personnel are generated every minute, and shown in the bottom line of final profit and loss. This requires a position to assume ultimate responsibility and stand up to commendation and punishment.

From the title "a href=" http://www.91se91.com/news/index_c.asp "CEO" /a ", we can see that orders, discipline and leadership are matched with the traditional symbols and treatment of the company's authority: offices in the corner, exclusive aircraft of the company, membership of many famous clubs, and, of course, salaries.

From the end of World War II to the mid 70s of last century, the real value of executive compensation has always been flat.

But in the 1980~1996 year, the real value of CEO salaries of the S & P 500 companies grew at an annual rate of over 5%; overall, the CEO's salary level was 2 times higher than that of the early 90s in 1998.

Executive pay in other parts of the world follows this trend to varying degrees.

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< p > in fact, under the privileges of this kind of scenery, there is another reality, that is, the power of the company department is weakening and the power is not easy to keep.

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< p > this is not a rumor: statistics clearly show that few people can retain their CEO positions.

In the United States, which still has the largest companies in the world, the replacement rate of chief executives is higher in 1990s than in the first 20 years.

Since then, this trend has intensified.

In 1992, CEO of a href= "http://www.91se91.com/news/index_f.asp" > fortune < /a > 500 took up 36% of the post 5 years later, but by 1998, this figure was only 25%.

John Challenger, managing consultant, pointed out that the average time of chief executive's office was halved from 10 years in 1990s to 5 and a half years.

Several studies have confirmed this trend.

Another study found that nearly 80% of the chief executives of standard & Poor's 500 companies were ousted before retirement.

From 1990s to the beginning of twenty-first Century, the ratio of chief executives changed due to internal reasons (pressure on board) or external reasons (mergers and bankruptcies).

A 2009 study showed that 15% of American chief executives change every year.

The sample may be different from the company, and the data will be different, but the core trend is obvious: everything is getting more and more difficult to control in the place where "responsibility stops here".

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< p > this trend is global, not only in the United States.

Bose management consulting has tracked CEO changes in 2500 of the world's largest listed companies.

In 2011 alone, 14.4% of the world's top CEOs left their positions. The CEO of the largest 250 companies, a , had a higher turnover rate of less than /a, which began in 2005.

Over the past 12 years, on average, more than 14% of the top 250 companies have been replaced by market capitalization. Compared with 251st to 2500 companies, the proportion is 12%, which includes the reasons of planned retirement and illness.

But studies have found that CEO turnover is increasing both in the US and Europe.

In this regard, other regions with faster economic growth in the world are drawing closer to the West.

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