When Does a CEO Reach Their Peak?

#1
Seattle Hillbilly

Seattle Hillbilly

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#1
I often see a head coach of a major college football program compared to a CEO of say a S&P 500 company. If we accept that analogy, how does that S&P 500 company judge the CEO's performance? Do they allow the 'young' CEO (young in CEO years, not necessarily age) to continue to grow with the job? I think in most cases they accept gradual but consistent improvement.

I think Butch has definitely demonstrated this gradual and consistent improvement, and I also believe he is a better coach than when he got the job. Is there reason to believe he has peaked or should we expect him to continue to improve?

Your thoughts VolNation?
 
#2
#2
First there are very few "young" CEO's except Silicon Valley. However the company's judge a CEO's performance on quarterly reports, how they fare against industry results and the company's vision. As always there typically is a two year period where they can begin to impliment their vision. Butch has done enough to hold his job based on this criteria to date. However we now begin to judge him on the point of diminishing returns.The question before the board of directors is can we become the industry leader.
 
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#4
#4
A publicly traded company is compared to last years numbers. Are you up or down in sales and up or down in profit. CBJ's profit is wins. So far he is up which makes him a buy not sell.
 
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#5
#5
Most CEO's compensation is tied into Stock Options or Stock at a open price.The company does well, They and get raises each year by the board. Most have a nice parachute if things don't work out.. VERY similar to a power 5 coach.
 
#6
#6
Fijivol72 said:
First there are very few "young" CEO's except Silicon Valley. However the company's judge a CEO's performance on quarterly reports, how they fare against industry results and the company's vision. As always there typically is a two year period where they can begin to impliment their vision. Butch has done enough to hold his job based on this criteria to date. However we now begin to judge him on the point of diminishing returns.The question before the board of directors is can we become the industry leader.
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So continuing the analogy, we fans (VolNation) are the board of directors and we expect to be the industry leader. Given this, my question would expand to: by when do we expect to achieve this position (how long does Butch have to win a NC) and do we expect to maintain the industry leading position each and every year (can finishing second ever be good enough)?
 
#7
#7
I don't know about CEO but it seems that coaches in the SEC it is about 10-12 years. Then things begin to slide due to lack of wins, burnout, or a stagnant program. See Spurrier, Reich, Fulmer, or Miles. Come on down Saban.
 
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#9
#9
3holenones said:
I don't know about CEO but it seems that couches in the SEC it is about 10-12 years. Then things begin to slide due to lack of wins, burnout, or a stagnant program. See Spurrier, Reich, Fulmer, or Miles. Come on down Saben.
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Good point. There may be a 'burn out' that occurs in many or most cases. Has Butch 'burned out'?
 
#10
#10
Seattle Hillbilly said:
So continuing the analogy, we fans (VolNation) are the board of directors and we expect to be the industry leader. Given this, my question would expand to: by when do we expect to achieve this position (how long does Butch have to win a NC) and do we expect to maintain the industry leading position each and every year (can finishing second ever be good enough)?
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My guess is as long as we are looking at an SEC championship within a two or three year window he is fine.
 
#12
#12
4-4
9-2
8-4
11-1
10-2
11-2
13-0

Took Fulmer 6.5 years to "peak" then 10 years and he never "peaked" again
 
#13
#13
Seattle Hillbilly said:
So continuing the analogy, we fans (VolNation) are the board of directors and we expect to be the industry leader. Given this, my question would expand to: by when do we expect to achieve this position (how long does Butch have to win a NC) and do we expect to maintain the industry leading position each and every year (can finishing second ever be good enough)?
Click to expand...

As long as he is growing the business (which means wins) the CEO is fine
 
#14
#14
No logical way to compare one coach to another. Some peak faster than others. Many factors are involved with building and improving a football program.
 
#15
#15
volfanhill said:
A publicly traded company is compared to last years numbers. Are you up or down in sales and up or down in profit. CBJ's profit is wins. So far he is up which makes him a buy not sell.
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Makes sense. Assuming he get them to 10-2 regular season, is he expected to improve next year? I guess what I'm asking is where is a reasonable 'average' ceiling and minimum win expectation?
 
#16
#16
BigOrangeTrain said:
No logical way to compare one coach to another. Some peak faster than others. Many factors are involved with building and improving a football program.
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A reasonable answer. Injuries, odd bounces of a oblong ball, weather, missed interference calls, the list goes on and on. All of which can affect the performance of a team or, keeping with the analogy, a S&P 500 business (labor strike, Chinese economic slowdown, international military crisis, oil embargo, etc.). So are we to assume that an occasional 'off' year is to be expected and accepted?
 
#18
#18
Seattle Hillbilly said:
I often see a head coach of a major college football program compared to a CEO of say a S&P 500 company. If we accept that analogy, how does that S&P 500 company judge the CEO's performance? Do they allow the 'young' CEO (young in CEO years, not necessarily age) to continue to grow with the job? I think in most cases they accept gradual but consistent improvement.

I think Butch has definitely demonstrated this gradual and consistent improvement, and I also believe he is a better coach than when he got the job. Is there reason to believe he has peaked or should we expect him to continue to improve?

Your thoughts VolNation?
Click to expand...

He beat Florida and UGA. Dooley, Kiffin, and Fulmer at the end of his time did not. I say give him a little more time.
 
#20
#20
3holenones said:
I don't know about CEO but it seems that coaches in the SEC it is about 10-12 years. Then things begin to slide due to lack of wins, burnout, or a stagnant program. See Spurrier, Reich, Fulmer, or Miles. Come on down Saban.
Click to expand...

What usually happens in large corporations is similar to what happens in good fball programs and coaches. The talented assistants want to move up and often do not want to wait for the CEO or HC to retire and move on and eventually the group and chemistry that was there which made them great is no longer what it was. Saban has had his run but you have to think his time is close to being up. If he doesn't come home with the ring this year, would you want to be 70ish and put up with what he will have to put up with??
 
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#21
#21
Another big part of the evaluation of being a CEO/HC is where your company/team is perceived to be in relation to the competition. Regardless of how profitable the company is, if you are perceived to be slipping in relation to your competitors, you will be on the hot seat. This explains why coaches like Stoops aren't necessarily on the hot seat but fanbases are frustrated with them.

Tim Cook is the CEO of Apple. The company might be extremely profitable, have great margins, etc. However, if they are not innovating like they used to and if those margins/profits are not growing like they used to be, there will be pressure on him, especially since he is following an iconic figure like Steve Jobs. In fact there is a little bit of that pressure now on him.
 
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#22
#22
Once you (CEO) get to the top, your jr. officers are prime to move on (because they usually had a large part of getting to the top) asst. coaches are the same way. Look back at PF's staff after the nat. champ year. Didn't we start to lose assts.? This is where the problem starts. Watching Bama, they at this time seem to be replacing good with as good or better.
 
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#23
#23
savannahfan said:
Once you (CEO) get to the top, your jr. officers are prime to move on (because they usually had a large part of getting to the top) asst. coaches are the same way. Look back at PF's staff after the nat. champ year. Didn't we start to lose assts.? This is where the problem starts. Watching Bama, they at this time seem to be replacing good with as good or better.
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Yeah - Cutcliffe left the team before the national championship game in 1998.
 
#24
#24
Seattle Hillbilly said:
To be clear, is it your position that by year 4 or 5 Butch should win a NC or be replaced?
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No. Just double digit wins. This year has been completely ruined by injuries though.

You can't be expected to win NC unless you're alabama, and since we have to play them every year, it makes it all the more difficult.
 
#25
#25
Who knows..,, look at Saban's record. His numbers at Michigan State and LSU were good, but not good enough to satisfy the likes of Volnation. His numbers since arriving in Tuscaloosa though are amazing.
 
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