Staying Put vs. Changing Companies: The Path to Fortune 500 CEO
When aspiring to ascend to the role of a Fortune 500 CEO, many wonder whether it's better to stay loyal to a single company for a prolonged period or to change jobs every 3 to 5 years. This article explores the empirical evidence, drawing on the career trajectories of current Fortune 500 CEOs to provide insight into the most common paths taken.
Empirical Evidence from Current Fortune 500 CEOs
One way to approach this question is by examining the length of time current Fortune 500 CEOs have spent at their respective companies. Contrary to popular belief, the majority of these CEOs have very long histories at their firms, often with the same company for their careers.
Moreover, many have never worked anywhere else. There are, however, a few notable exceptions, particularly when companies are facing severe difficulties, and the board decides to bring in an outsider for the last chance to turn things around. Despite these exceptions, the most common path for a CEO is to be a long-serving employee, demonstrating the value of deep organizational knowledge and loyalty.
CEO Tenure at Top 10 Fortune 500 Companies
Let’s dive into the Career Histories of the current top 10 Fortune 500 CEOs, highlighting the significant time they've dedicated to their respective firms:
Walmart: McMillon joined Walmart in 1990 and became CEO 23 years later in 2013. Exxon: Tillerson joined Exxon in 1975 and became CEO 31 years later in 2014. Chevron: Watson joined Chevron in 1980 and became CEO 30 years later in 2010. Berkshire Hathaway: Buffet has been with the company almost since its inception, serving as a CEO from the late 1960s to the present. Apple: Cook joined Apple in 1998 and became CEO 16 years later in 2011. General Motors (GM): Barra joined in 1980 and became CEO 33 years later in 2014. Phillips 66: Garland joined Phillips 66 in 1980 and became CEO 33 years later in 2013. General Electric (GE): Immelt joined GE in 1982 and became CEO 19 years later in 2001. Ford: Fields joined Ford in 1989 and became CEO 23 years later in 2012. CVS Health: Merlo joined CVS Health in 1990 and became CEO 21 years later in 2011.The Value of Learning and Experience
While staying with the same company may provide opportunities for deep expertise and loyalty, there are undeniable benefits to changing companies every 3 to 5 years. One of the most significant advantages is learning.
Switching companies allows professionals to broaden their skill sets, gain diverse experience, and learn from different management styles and corporate cultures. This exposure can be incredibly valuable in developing a well-rounded understanding of business operations and leadership techniques.
Rapid changes in the business landscape necessitate adaptability, and working for several organizations can provide insight into both potential opportunities and pitfalls within various industries. This keeps one’s perspective fresh and current.
Conclusion
Whether one should stay for decades at the same firm or change jobs every 3 to 5 years depends on individual career goals and aspirations. Both paths can lead to becoming a Fortune 500 CEO, but each offers unique advantages. For some, deep expertise and loyalty may be more valuable, while others may find that a broader range of experiences keeps their skills sharp and their career trajectory dynamic.
In summary, the route to a top CEO position in a Fortune 500 company may vary, but the most common path is marked by longevity and dedication to a single organization. However, embracing change can offer unparalleled learning opportunities and a diverse skill set, making a compelling case for a varied career path as well.