Too soon to change jobs? Pres/CEO types

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Bacchus01
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Too soon to change jobs? Pres/CEO types

Post by Bacchus01 » Wed May 13, 2015 3:58 pm

What would you do in this scenario?

Current: 2 years with a company as head of a $.5B business unit. First time heading up a business this large. Age early 40s. Have probably 1 steps possible up for a large private megacorp to group leader of a $2B division. Total comp mid 6 figs. Total comp potential even at next step is probably high 6 figs.

Approached by a CEO of a~$1.5B public company. CEO wants business unit leader for ~$.5B division with plans to succeed to CEO in 3-5 years. Total comp in the business leader role would be high six figs, approaching 7 figs (including options) and be into mid 7 figs at CEO role, if achieved.

Really like current business and doing very well. Would consider option 2 seriously if it was about 2-3 years from now as I feel jumping ship in 2 years is a bad sign and haven't really left mark yet. But then, won't have a CEO opp at current company so will have to make the jump at some point in the next 4-5 years most likely. Could do it now, or gain more experience. I think a CEO level role at ~$2B-$5B company is in my path regardless of approach, but this one probably sets it up a bit sooner. Nothing is every guaranteed, of course.

Pursuing me heavily. I don't like wasting people's time.

New role is not a relo either, actually, would reduce commute from 1 hour to probably 15-20 mins.

absolutFinance
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Re: Too soon to change jobs? Pres/CEO types

Post by absolutFinance » Wed May 13, 2015 4:44 pm

you'll rarely get dinged for taking the new job even if you don't evolve into the CEO role. you have a good story for why you left (grow into CEO successor). unless you have some long term comp structure for your current job or you don't like the new company's industry/leadership team, I don't see why you wouldn't leave (more pay, shorter commute, better growth potential, hopefully less politics at a smaller corp)

GottaGetThisGoing
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Re: Too soon to change jobs? Pres/CEO types

Post by GottaGetThisGoing » Wed May 13, 2015 8:00 pm

It's better to regret things you have done, than those you haven't done.

I've only run a .2B P&L, but if you think you can succeed at the new opportunity, by all means do it.

You should evaluate your overally likely expected value. To me it sounds like this opportunity will give you a greater compensation and gratification from your career.

In reading your summary I didn't see any shortcoming except you haven't been at the current job so long. Don't feel like you need to punch your clock, go do what you're capable of and enjoy continued success! :moneybag :sharebeer

downshiftme
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Re: Too soon to change jobs? Pres/CEO types

Post by downshiftme » Wed May 13, 2015 11:24 pm

Not a career path I have any interest in, but my 2 cents is of course you take this new job. Obviously. And here's why: opportunities with a clear path to CEO roles at this level, not to mention a built in mentor who wants you to make the leap, are rare. You don't appear to have one where you are now and even after two years running your business unit there's no indication such a path might even develop. In fact you know you will need to leave the current company in a few years and try to find a new opportunity where such a path could be developed - and no guarantee then you will find such a slot nor that you can turn it into a path to CEO. What could be better about the unknown future possible career advancement slot that you don't get immediately if you simply take this new job? Likely nothing. You have an awesome opportunity here. Don't let it pass you by.

LeeMKE
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Re: Too soon to change jobs? Pres/CEO types

Post by LeeMKE » Wed May 13, 2015 11:31 pm

Not too soon for you. Too soon for your current employer. Take the leap.
The mightiest Oak is just a nut who stayed the course.

itstoomuch
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Re: Too soon to change jobs? Pres/CEO types

Post by itstoomuch » Thu May 14, 2015 12:09 am

??
How did your treat your subordinates who left for better opportunities soon after their promotion?
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

carolinaman
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Re: Too soon to change jobs? Pres/CEO types

Post by carolinaman » Thu May 14, 2015 6:39 am

As you said, there are no guarantees. However, to the extent you can assess the probability of this occurring, it would be helpful to your decision. For example, sometimes a person's leadership style may not fit the company culture even though the person is very capable. If you think you have a really good shot at the CEO position, I think this is a great opportunity for you.

wfrobinette
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Re: Too soon to change jobs? Pres/CEO types

Post by wfrobinette » Thu May 14, 2015 12:31 pm

Bacchus01 wrote:What would you do in this scenario?

Current: 2 years with a company as head of a $.5B business unit. First time heading up a business this large. Age early 40s. Have probably 1 steps possible up for a large private megacorp to group leader of a $2B division. Total comp mid 6 figs. Total comp potential even at next step is probably high 6 figs.

Approached by a CEO of a~$1.5B public company. CEO wants business unit leader for ~$.5B division with plans to succeed to CEO in 3-5 years. Total comp in the business leader role would be high six figs, approaching 7 figs (including options) and be into mid 7 figs at CEO role, if achieved.

Really like current business and doing very well. Would consider option 2 seriously if it was about 2-3 years from now as I feel jumping ship in 2 years is a bad sign and haven't really left mark yet. But then, won't have a CEO opp at current company so will have to make the jump at some point in the next 4-5 years most likely. Could do it now, or gain more experience. I think a CEO level role at ~$2B-$5B company is in my path regardless of approach, but this one probably sets it up a bit sooner. Nothing is every guaranteed, of course.

Pursuing me heavily. I don't like wasting people's time.

New role is not a relo either, actually, would reduce commute from 1 hour to probably 15-20 mins.
If you think you'll succeed, take the new role then save all of the raise and options boglehead style. You have a clear line in to CEO in this new role. If it doesn't work out for the CEO you'll be much wealthier much sooner.

edge
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Re: Too soon to change jobs? Pres/CEO types

Post by edge » Thu May 14, 2015 1:12 pm

Two years is long enough. Moving up at that level with a path to the level after is rare and you should jump on it.

Just be sure you are ready to succeed and know what it takes at the next level. Too many people get themselves into next level jobs and keep doing the same thing that they were at the previous one. It really is different, the problems are different, and it requires a different mindset to be successful.

To the earlier poster who mentioned how we feel when people we promote leave after 2 years: I am typically happy when people I have developed continue to succeed. Two years is plenty, this isn't indentured servitude.

Furthermore, like it or not, at the top of the pyramid there is intense competition for talent and if talent is leaving in droves its because the company isn't doing enough to keep it. In some cases there just isn't enough space at the pinnacle and losing people from time to time is sort of the cost of doing business.

rayson
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Re: Too soon to change jobs? Pres/CEO types

Post by rayson » Thu May 14, 2015 1:45 pm

As others posted, new offer clearly wins out in terms of compensation and commute time. But, here are some other food-for-thought aspects to think about:

1. Travel
2. How well do you think you will get long with new CEO?
3. Do you feel your skills/experiences are a good fit for new company/business?
4. Assess power dynamics of CEO's direct reports
5. Is the business unit you'll possibly take over a strategic unit of the company?

Good luck!

itstoomuch
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Re: Too soon to change jobs? Pres/CEO types

Post by itstoomuch » Thu May 14, 2015 2:58 pm

edge wrote:To the earlier poster who mentioned how we feel when people we promote leave after 2 years: I am typically happy when people I have developed continue to succeed. Two years is plenty, this isn't indentured servitude.
Thankyou.
But Is the OP ready? Especially if he has to ask the question?
At this level, he should be more sure. :D

I never got above, line worker. So what do I know. :oops:
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

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FrogPrince
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Re: Too soon to change jobs? Pres/CEO types

Post by FrogPrince » Thu May 14, 2015 3:56 pm

My 2c: first step is to get an offer from smaller place. Then go to current employer and ask for path to ceo guarantees - say how much you love it here and don't want to go, but ceo title is attractive. Most likely they will say no. Then go ahead and take offer from smaller co.

This way, you gave old employer fair shot, such that if the new position blows up, you have a path back. And you will be marked as an ambitous type, which is great for references in the future. No burnt bridges.

Maybe in two years time, if they need a new CEO at the old place, they might call you back ;)

Bacchus01
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Re: Too soon to change jobs? Pres/CEO types

Post by Bacchus01 » Thu May 14, 2015 4:00 pm

itstoomuch wrote:
edge wrote:To the earlier poster who mentioned how we feel when people we promote leave after 2 years: I am typically happy when people I have developed continue to succeed. Two years is plenty, this isn't indentured servitude.
Thankyou.
But Is the OP ready? Especially if he has to ask the question?
At this level, he should be more sure. :D

I never got above, line worker. So what do I know. :oops:
Oh, I know, but I also am the type of leader and person that likes to see different viewpoints and gather information before making large decisions.

fourkids
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Re: Too soon to change jobs? Pres/CEO types

Post by fourkids » Thu May 14, 2015 4:18 pm

Take opportunities when they present themselves. I don't regret much, but I do regret passing up 1 great job offer, because the timing was bad.

Do some serious due diligence and make sure you really like everything about this new company. Sign an NDA and ask to see the last 3 years of financials. I've taken a couple jobs where it looked like a great opportunity, but they made some previous bad decisions and contracts that they couldn't get out of, and it wasn't so great.

Valdeselad
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Re: Too soon to change jobs? Pres/CEO types

Post by Valdeselad » Thu May 14, 2015 4:26 pm

I look at things a bit differently in the sense that I place a high value on the company, its culture, and its people. Certainly you have a great opportunity financially and job level wise, nobody would argue that. But consider that you would be going from a private company to a public one, and with that come responsibilities to a very different set of shareholders. Nothing wrong with either one, but make no mistake they are different.

If you love what you do and enjoy the company you are currently with, recognize that more money will not necessarily mean more happiness and job satisfaction. The grass is not always greener...

Former Usher
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Re: Too soon to change jobs? Pres/CEO types

Post by Former Usher » Thu May 14, 2015 4:53 pm

fourkids wrote:Take opportunities when they present themselves. I don't regret much, but I do regret passing up 1 great job offer, because the timing was bad.
Conversely, my primary regret is leaving a long-time employer to accept what appeared to be a very good job offer. Fifteen months later my salary was cut 30%. Ultimately I found another job at a great company, but my current compensation is less than it was as far back as 2008.

staythecourse
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Re: Too soon to change jobs? Pres/CEO types

Post by staythecourse » Thu May 14, 2015 6:17 pm

I'm not in business so may seem naïve in asking, but is the new job and their corporate culture more or less consistent with promoting from within? Obviously, they are going outside to get someone like you so how consistently do they do that? Do you trust the CEO (personally) that he/ she would have you take over in the near future?

If the answer is >50% I would take it in a heartbeat. You are obviously a motivated person so how many opportunities do you think for CEO fall into one's lap (even a chance of one)? It isn't about money as any option you choose or don't you end up in mid 6 digits AT WORSE. This all has to do with meeting you ultimate career aspirations.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

Bacchus01
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Re: Too soon to change jobs? Pres/CEO types

Post by Bacchus01 » Tue Aug 04, 2015 9:21 pm

I never closed this out, but I passed on the opportunity. I just felt I needed a bit more time to build some results and have credibility wherever I may go next. I think that's important in a leader.

The CEO keeps in regular contact with me.

I have an annual meeting with our group president in a few months where we are going to discuss some things and then I can get a gauge on things and start a plan for maybe a year or 18 months from now.

edge
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Re: Too soon to change jobs? Pres/CEO types

Post by edge » Wed Aug 05, 2015 7:46 am

Impossible to say which one would be better but it sounds like you have thought it through and have solid reasons.

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