Why Don't More People Want to Become Executives??
So I will soon begin to study for the GMAT and be trying to get into a top MBA program. My idea is to try and get into M&A as an associate. But the more I see what executives are getting paid, the more I wonder if I should try and pursue the executive path instead of I-Banking.
Seriously, CEO's / COO's / CFO's are freaking rolling in the dough. Every-time I see another CEO being paid $50mm for a year, I wonder if I should consider this route more seriously. The first thing I wonder though is how the hell could any 1 person be worth this much to a company?? It's ridiculous when you really think about how much executives are being paid. There is just no way a majority of them are worth even 10% of what they are being paid, how could they be??
Why don't more people want to get to the tops of corporations?? Seems like the life to me. The more I see the compensation of these people the more I wonder to myself if this is where I should be trying to get to in corporate america instead of banking. I just can't quantify any 1 human being ever being worth what they are paid... but sounds like the place to be for sure. Honestly, there is no way executives are that much better than everybody else, IMO, they just worked smart and got to the right place... Definitely on my radar for career pursuits. Thoughts??
here's why: being an exec is about people skills, and most of the virgin army of WSO thinks that you can just be an expert and modelling and then get to the top. a big part of my practice is dealing with execs, and their backgrounds are good, but nothing WSO would salivate over. usually a good/great state school, rotational program after that, MBA possibly, but then just busting your ass in whatever role you got. the people I know who are most stable are on the sales or finance side at large publicly traded companies, the bonuses, salary, and potential is great, and I'd argue that they make the same as some of their counterparts in finance, but the difference is in role. many people on this forum don't want to be travelling 60-80% of the time going to see clients, having to close business/be part of the team that closes business, and then still have to put in facetime at the office.
there is also an element of politics to it, sure the top salespeople will be looked at upon more favorably, but you have to play the game as well, say yes to the golf trips, the dinners, and to the less glamorous stuff, like set up and clean up for a client appreciation event, the long hours, etc. finally, this is a finance forum, I'm sure plenty of people get a massive hard-on at the thought of being asked to be a senior analyst at a buyside firm and make 500k-1mm/year plus incentives for performance. I don't know that one is easier than the other, but people seem to be more enamored with the finance side as the earnings potential is virtually unlimited (seems more meritocratic than political) whereas the corporate world more of the bacon you bring goes to shareholders/your bosses, despite the fact (as you stated) that they pay very very well.
Add the unhealthy stress involved along with the daunting hours too. I would rather be the senior analyst or at least find something where I can hit the 40-hour mark as closest as I can so I can maintain a healthy life outside of finance.
This is like asking why more people don't want to be famous athletes? Of course people want to but the risk and randomness of making it make it either not pursued or something people eventually hope will be an option
Also to keep with the analogy: you don't pursue being a star athlete, that's a dream. You become an athlete, most of which don't make it. Similarly, many pursue business but becoming an executive is making it.
Now I also want to add the part you're right about that people pursue careers like hedge fund manager mode actively than executive and I think that's due to the lack of a defined path and all the reasons the above poster listed
Only on WSO do junior people "decide" if they would rather be CEO of a Fortune 500 company or some BSD on Wall Street. What makes you think many people at a place like GE don't want to become CEO? Mind blowing.
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