Which CEOs Are You Talking About?
Some of what I’m reading lately about businesses and particularly CEOs concerns me deeply. Most of America’s CEOs, like those who are members of Vistage, are running established small and medium-sized enterprises (SMEs). They are not the large company CEOs being vilified in the media and by so many in Washington. This distinction needs to be made and understood.
The CEOs I’m talking about are different from the ones we’ve been reading and hearing about. Their identity, their net worth, their reputation are tied up with their business. There’s no such thing as a CEO of a small or medium-sized business who walks away with a huge bonus only to have his business sink the next week. That might happen on Wall Street, but not Main Street. You won’t find a CEO of an SME who says, “I don’t really know what’s on my balance sheet, or how things are really working, or the real value of my assets; I just know we’re making a lot of money and don’t really care to find out the rest.” They can’t afford not to know. They ask questions and challenge assumptions because what happens to their business is what happens to them, and vice versa. They’re intertwined.
In a recent NY Times piece, Paul Krugman wrote, “CEOs are people, too—but soothing their hurt feelings isn’t a priority right now, and it has nothing at all to do with promoting economic recovery.” I thought, how unfair and unkind. Which CEOs is he talking about? Does he ever talk to or think about the CEOs who run Main Street businesses all across our great country? Respecting their feelings does matter. And they—not Washington or Wall Street—will drive our economic recovery. After all, SMEs are responsible for 50% of our GDP, 75% of the non-government jobs, and virtually all of the innovation and entrepreneurship in this country.
SMEs need and deserve less government intrusion, more access to credit, and a more discerning media. What’s good for smaller businesses is good for America!
Category: Leadership
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About the Author: Rafael Pastor
Since 2004, Rafael Pastor has been Chairman & CEO of Vistage International, the world's leading chief executive membership organization. Established in 1957, headquartered near San Diego, and dedicated to executive deve…
That last sentence is key!
That last sentence is key!
Rafael,
I think the reason CEOs get the stigma is that Americans have come to need a scape goat for everything that goes wrong. Rather than admit that by demanding cheaper prices and higher quality they are building a culture of unhealthy competition they look for somebody to blame when a major catastrophe happens and they realize some company has been gaming the system. Look at Wal-Mart, the American people HATE Wal-Mart because they believe it is an evil empire killing small businesses. Yet they still shop there, IN DROVES!! I’m sure some large percent of Americans think that corporations in general are evil, yet they do nothing to demand openness. It’s not that CEOs or corporations are bad it’s that politicians and those seeking power have made people BELIEVE that they’re bad in order to increase their power base.
Sad but true.. hopefully this gets turned around because in the end, it is bad for everyone.
Rafael,
I think the reason CEOs get the stigma is that Americans have come to need a scape goat for everything that goes wrong. Rather than admit that by demanding cheaper prices and higher quality they are building a culture of unhealthy competition they look for somebody to blame when a major catastrophe happens and they realize some company has been gaming the system. Look at Wal-Mart, the American people HATE Wal-Mart because they believe it is an evil empire killing small businesses. Yet they still shop there, IN DROVES!! I’m sure some large percent of Americans think that corporations in general are evil, yet they do nothing to demand openness. It’s not that CEOs or corporations are bad it’s that politicians and those seeking power have made people BELIEVE that they’re bad in order to increase their power base.
Sad but true.. hopefully this gets turned around because in the end, it is bad for everyone.
Being the CEO of several small companies I`d say there`s some truth in what the author is saying. Generally small business CEO`s are closer to the nut`s and bolts of the operation, but that doesn`t mean all CEO`s of large companies are evil or out of touch. Certain corporate cultures promote less than sincere effort by CEO`s — I feel BP`s management culture has led directly to their current problems. An aloof and self-centered management is a recipe for disaster in any business. If CEO`s of small companies want better press than that`s exactly where they need to start focusing — getting the real story out to the public. 99% of all CEO`s are very moral, hard working and focused on improving value for their shareholders.
Being the CEO of several small companies I`d say there`s some truth in what the author is saying. Generally small business CEO`s are closer to the nut`s and bolts of the operation, but that doesn`t mean all CEO`s of large companies are evil or out of touch. Certain corporate cultures promote less than sincere effort by CEO`s — I feel BP`s management culture has led directly to their current problems. An aloof and self-centered management is a recipe for disaster in any business. If CEO`s of small companies want better press than that`s exactly where they need to start focusing — getting the real story out to the public. 99% of all CEO`s are very moral, hard working and focused on improving value for their shareholders.
This is an excellent article and calls the due attention on just how significant the SME CEO commuinty contributes to our U.S Free Enterprise system. In some cases, perhaps we ought to see SME CEO’s sitting on the Boards of their Big Company siblings to remind Wall Street companies that their roots come back to Main Street.
This is an excellent article and calls the due attention on just how significant the SME CEO commuinty contributes to our U.S Free Enterprise system. In some cases, perhaps we ought to see SME CEO’s sitting on the Boards of their Big Company siblings to remind Wall Street companies that their roots come back to Main Street.