Machiavelli in the boardroom: it may not be stilettos and poison rings, but new CEO/princes face real boardroom dangers.

AuthorAtkins, Betsy
PositionGUEST COLUMN

IN MY CAREER as a .company founder, venture capitalist, and corporate director, I've met many business leaders, thinkers and doers. All have offered good advice on launching, managing and monitoring an enterprise. But many of these leaders are a bit .shy on sharing insights on a tricky, but important, aspect of leadership--how the savvy chief executive manages his or her board of directors. So, I thought I'd check in with one particular long--time acquaintance on high-stakes career management in the real world. Niccolo Machiavelli, 15th century Italian diplomat, courtier, and author of The Prince, thoughtfully answered my email (on parchment, no less) on how our modern boardroom princes should use realpolitik to survive and thrive:

"Thank you for your query, Betsy, and for the information you thoughtfully included. If the longevity of CEO positions today has truly declined to 4.5 years, it would seem that the overthrow of sovereigns now is even more common than in the time of the Medicis (albeit less deadly).

"There seem to be various factors in making the modern chief executive short lived. The most frequent cause of CEO turnover is company underperformance relative to peers (though there seem to be many exceptions to this rule). The board of directors then may lose confidence in the prince, particularly if shareholders are raising a din outside the castle gates.

"However, the board of directors of the enterprise may bring less democratic impulses to their governance role. CEOs of companies which feature a separate board chair, particularly a founder or emeritus chairman, are especially vulnerable. This powerful, independent boardroom leader's views carry great weight with the other directors, and he can be mercurial in his support or opposition to the chief. Though a founder may have been the incoming CEO's sponsor or mentor, he can prove fickle if the founding legacy seems at risk, and do a turnabout to lead .a boardroom rebellion.

"While the founder or emeritus chair may claim the highest of motives for such a revolt, we often find the replacement 'CEO to be none other than the founder or emeritus chair himself. Indeed, it is quite possible that any of the princelings gathered around that board table may in fact be seeking your crown. The ideal director is a current or recent CEO with fresh experience, mentoring ability, and the perspective of a...

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