Although many CEOs are disbarred for political reasons and power struggles and others for unethical behavior, many choose willingly to leave their organizations. It is a difficult decision to make, as not only does the leader need to make the best decision for themselves, they have many people in the organization who depend on them and their leadership skills to remain successful. Also, leader departures can cause their attached subordinates to become detached, and think about leaving as well. But one can understand why CEOs might leave or change careers. For example, Mohamed El-Erian, the CEO of Pimco, left the firm in 2014 when his daughter handed him a list before her bedtime. This list compiled all the momentous events and activities that he missed in her life due to work commitments.

Not only does the CEO perhaps have an obligation to the companythe company also has an obligation to the CEO. Erika Andersen, a writer at Forbes, notes that "Top talent leave an organization when they're badly managed and the organization is confusing and uninspiring." These reasons can just-as-easily apply to leaders.

A newer approach suggests that we should see turnover as inevitable, even for star performers. As Professor Finkelstein of Dartmouth College notes, "The bosses I studied also took advantage of a wonderful paradox: when you stop hoarding your people and focus on creating a talent flow, you find that more of your top people actually do wind up staying." Furthermore, when these CEOs leave, they are added to the "alumni network" and can become powerful allies to the organization in the future.

Sources: E. Andersen, "Why top Talent Leaves: Top 10 Reasons Boiled Down to 1," Forbes, January 18, 2012, https://www.forbes.com/sites/erikaandersen/2012/01/18/why-top-talent-leaves-top-10-reasons-boiled-down-to-1/#5eef38a04e43; N. Bozionelos and S. Mukhuty, "Why CEOs Resign: Poor Performance or Better Opportunities?," Academy of Management Perspectives 29, no. 1 (2015): 4-6; R. Derousseau, "5 CEOs who Quit for the Right Reasons," Fortune October 21, 2014, http://fortune.com/2014/10/21/ceos-quit-right-reasons/; M. N. Desai, A. Lockett, and D. Paton, "The Effects of Leader Succession and Prior Leader Experience on Postsuccession Organizational Performance," Human Resource Management 55, no. 6 (2016): 967-984; S. Finkelstein, "Why the Best Leaders Want Their Superstar Employees to Leave," The Wall Street Journal, October 3, 2016, https://www.wsj.com/articles/why-the-best-leaders-want-their-superstar-employees-to-leave-1475460841; and D. L. Shapiro, P. Hom, W. Shen, and R. Agarwal, "How do Leader Departures Affect Subordinates Organizational Attachment? A 360-Degree Relational Perspective," Academy of Management Review 41, no. 3 (2016): 479-502./.

Questions

1. What do you think a CEO or leader should do, prior to considering leaving the organization? What does the CEO or leader owe the employees? Why?
2. Do you think there is an appropriate time for a CEO or leader to consider or announce leaving the organization? What are some examples of times when he/she should not leave? What about examples of the best times that he/she can leave?
3. What can organizations do to retain their CEOs and leaders? Is this an exercise in futility (in other words, is it meaningless to try to do anything)? Why or why not?