Even CEOs and Presidents Report to someone or something

As young workers and executives, we always thought that when we got to the top, we could then do what we wanted, because we would have no one to answer to, or report to. How wrong we were and for those of you who hold to this view, this is the purpose of this posting.

CEOs and Presidents of public companies, report to their shareholders and their shareholder's expectations. Shareholders can be investing in a company for asset growth, which is reflected in stock price appreciation with an intention at some point in time of selling the shares and reaping the rewards. Other shareholders invest in a company for dividend payments which provides cash flow and an income stream for them. Obviously, some invest for a mixtures of these two situations. In any case, the Senior Executives and especially the Chairperson, CEO and President is charged, in one form or another, to deliver on share holder expectations. If they don't, they will most likely not last with the company or in that position.

Non-Profit companies, while not paying dividends, are in business to provide, generally, services and are required to remain financially viable, or else, they too will close. Profitability takes the form of fund raising and/or financing their operations through sales.

In private companies, in most instances, C-Suite executives are still expected to deliver results, because the financiers (banks and private investors), still expect to see similar results as those of share holders in public companies, because they need to receive money for the financed debt. Failure to make these payments on debt, results in the bank taking over the company in one manner or another, or investors withdrawing support and funds from the organization.

In rare instances, there are private companies that do not have any debt and fund their growth through internal profits and cash flow. Even here, many times, this kind of private company is being positioned for family members and relatives to benefit from the growth. In the meantime it provides cash flow to the owner or owners and spouse(s) to support their life style. So the purpose of such a company is either positioning it for ultimate job opportunities for family, relatives and friends, or with the intent in the future to sell the business and cash out at some point in time. So even in this unusual situation, the C-Suite Executive(s) still have pressure from within to deliver in one form or another, driven by expectations: voiced and unvoiced.

So, everyone answers to someone or something, regardless of position and circumstance. This does not take into account personal beliefs. It's never as easy as it appears on the outside.