The Path to Becoming a CEO of a Company
Posted: March 26, 2021 | Author: Sayre Davis | Read Time: 4 minutes
The romanticization of becoming a chief executive officer (CEO) has grown over the past couple of years. The growing knowledge of who CEOs are and the money they make has brought attention and longing for that career direction. However, the route to becoming a CEO can be difficult and grueling.
Being the chief executive officer of a company means you will be the one that makes the big decisions and has a large influence on the company’s overall direction. As we discuss what it takes to become a CEO, consider that if this is the path you want to pursue, beginning as soon as possible will be necessary.
What Does a CEO’s Early Life Look Like?
Studies show most CEOs have common factors in their early life that start them along the path of this career. One of these common factors is many of them are the firstborn or only child. Studies show that this difference makes them more likely to take risks in their career. Taking risks as a CEO is one of the best ways to progress and make money in a company. Where the person falls in the child order and if they have had trauma makes them more likely to make and take risks in the business world.
Where to Attend School
Without a degree, the odds of becoming a CEO are nearly impossible. Every CEO of the Fortune 500 companies has a master's degree or a Ph.D. When the goal is to become a CEO the school you choose for your undergrad doesn't matter as much as the school you choose for your MBA. When choosing where to earn your master's degree, studying at a prestigious school is more important than your grades at the school as long as you graduate. Out of the top 500 CEOs in the US, 25 of them have a degree from Harvard.
What Type of Degree do CEOs Earn?
There are many degrees that you can get that can be helpful in your goal of becoming a CEO. One of the most recommended master's degrees for someone hoping to be a CEO is economics. This degree can be helpful in managing a company's money and where to spend it. Some other degrees that can be helpful are business administration and accounting. The best degree that you can get for the role of a CEO is an MBA.
Job Experience for a CEO
Getting the job of a CEO is one of the most difficult positions to achieve in the world of business. One of the biggest factors of getting a job as a CEO is the ability to be working within the firm beforehand. Only about three percent of CEOs come from an outside hire. The best shot to become a CEO is to get employment in the company you wish to climb the ranks of.
Most Fortune 500 CEOs move into large operational roles within their current workplace and one of the most common roles for someone who becomes a CEO has is the role of CFO. Having a financial background can give you the edge as a CEO and should be the goal if your aim is high in the company.
Odds of Becoming a CEO
The odds of becoming a CEO are 1 in 135,000. These odds are very large, but doing what we have talked about will bring these odds to a much smaller percentage. One of the best things that can lower the odds is getting a job at McKinsey Consultant, which is 1 in 690. Yet, as these odds are great, working hard and being determined is the ultimate solution to become a CEO. There are hundreds of success stories from individuals who started at the bottom of the corporate ladder and made it to the top. A few great examples of this are Ursula Burns, David Geffen, and Karen Kaplan.
There is a great feeling of urgency in the prospect of becoming a CEO. While it might seem daunting in the beginning stages, becoming a CEO is the chance of a lifetime.
Produced by SUU's Graduate School
SUU's Graduate School draws from a prestigious heritage and allows students to pursue a quality education. The master's degree programs offer students the chance to further their professional careers, like becoming a CEO, on-campus or online.
Tags: School of Business Graduate Programs
