How to Become CEO – CEO Factories
In the article Corporate Career Success – How to Become CEO we described in detail the key vital traits required to become a CEO. In this article we will address the question of how to become a CEO from a different angle. This time we will be focusing on the companies that will give you the type of experience that will most likely lead to a CEO position.
You may be surprised to know that one in five CEOs of public companies with a market value of at least $2 billion have one thing in common. They all have held a job at one of just 20 companies, and one in every 10 CEOs have worked at one of eight companies. Two companies in particular stand out at producing the most CEOs: General Electric and IBM.
Even though these two giants have developed the most CEOs, that are other companies where you would have a better change of getting to the top job. For example, GE has a workforce of 300,000 employees, and has produced 26 CEOs of $2 billion plus public companies. Therefore, GE employees have a 1-in-11,540 chance of becoming the CEO of such a company. At IBM the odds are even worse, with 1-in-20,360 employees reaching the pinnacle of the corporate world.
On the other hand, McKinsey, the CEO factory with the best odds of producing the CEOs of large public companies has a workforce of 11,000 and has produced 16 CEO alumni. This puts them in the lead with a 1-in-690 shot for its employees. The second best is Deloitte & Touche, at 1-in-2,150 odds.
The top consulting firms, including McKinsey, Deloitte, PricewaterhouseCoopers, Ernst&Young and the now-defunct Arthur Andersen all rank in the top 20 as CEO factories. These companies like to hire the top MBA grads and put them through the grind with an aggressive up or out approach.
The top 19 companies at producing CEOs in descending order of odds of becoming CEO based on the number of employees are as follows:
- McKinsey
- Deloitte & Touche
- Baxter International
- PricewaterhouseCoopers
- Ernst & Young
- Merrill Lynch
- Motorola
- Intel
- Procter & Gamble
- General Electric
- Honeywell
- Novartis
- PepsiCo
- Disney
- ExxonMobil
- Johnson & Johnson
- IBM
- AT&T
- Citigroup
One thing to keep in mind when looking at this data is that it reflects the companies that produced today’s CEOs in past decades. It may not necessarily reflect today’s best CEO factories. In the world of business, success breeds success, and the most successful companies of today may be training the CEOs of tomorrow.
But not all successful companies are alike. Few are able to develop the kind of leadership skills required to run some of the world’s largest corporate conglomerates. Only a few companies are capable of identifying top talent and giving them the opportunity to develop by putting them through stretch assignments domestically and abroad.
A good example of this is the story of Tony White, the CEO of Applera, a 26-year Baxter alum. At the young age of 28 he had become general manager. Baxter is very good at giving people freedom and allowing them to make mistakes, which is fundamental for growth. “Where else in the world could you get that?” asks White.
If you develop the 22 vital traits of a CEO as described in the book How to Think Like a CEO by D.A. Benton, get an MBA from a top school, and get a chance to work in one of the 19 CEO factories mentioned above, you will greatly increase your odds of becoming the top person of a large corporation.
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Comment by Ryan J Bayko on 2009-01-30:
One day I hope to be a CEO of one of these top 19 companys/businesses. But being 15 means I have years to go.
Comment by Anthony Morgan on 2009-04-23:
Um, i too am 15 and as well i dream of becoming a C.E.O of one of these companies but of course i will demolish anyone in my path to victory!!!!
Comment by Kathleen on 2009-05-13:
I am 13 and wish to be a CEO of a media conglomerate like News Corp.I am a women but personally I think that it will be an advantage to me.I believe that the age of men is fading and more women will be in positions of power in the future.And anyway may gender does not affect the fact that I am very knowledgeable and manipulative and will also destroy anyone that stands in my way. lf your reading this and want to be a CEO,look out because I am coming for you!
Comment by milen on 2009-06-21:
I hope to be a CEO too one dayy i really want to be succesful in life but i doubt i can be a ceo because if you wanna be a ceo uhh you have to start from the bottom and work your way up and if you go to collage for a good 6 or 7 years in the feild of business then when you get out you would be about 25 OR 26 and you have to think about getting your life straight getting married kids ext ext. and if you start from the bottom at age 25 then its gonna take probally 10 years for you to build your self up to a CEO range, and the problem with that is how are you gonna support your family starting off from bast
Comment by David on 2009-08-14:
Great Information. Never would have even thought…
Comment by Truth on 2009-08-23:
To be CEO you have to be White. If you are Black then go to a company founded by Blacks. If you are Asian, forget it. You have to start your own company. If you are Latino, it depends on how White you look.
Comment by WWS on 2009-08-23:
Truth,
I completely disagree with your comment. CEOs come in all races, shapes and sizes.
Comment by S.K. on 2009-08-26:
I am 14 and I am determined into becoming a CEO. It is hard work but I believe it is possible. I am hoping that I will work for giants such as Mckinsey, Intel, or Disney. All I want is to become succesfull
Comment by Seb on 2009-08-26:
Truth, just wondering if you have heard of Stan O’Neill, black ex CEO of investment bank Merril Lynch, or Barack Obama CEO of the USA perhaps. True it is more difficult to suceed if you come from a disadvantaged background, and there are still many racists out there, but it is possible for someone of any background to become a CEO. If they have what it takes and they want it enough then they can make it happen.
Comment by WWS on 2009-08-26:
S.K.,
Thanks for your comments. Good for you that you are aiming high at such a young age.
Comment by Shinxua on 2009-10-07:
I am 8 and I hope to become a CEO one day. I will demolish everything on my path to get there. It is my goal and my parents and my country will be proud of me. I will devote my entire life and joy and every drop of blood to get there. I will destroy anyone or anything that stand my way. My body breath to become CEO. From today and on I will only eat, drink, and sleep to become a CEO.
Comment by WWS on 2009-10-07:
Very strong words for someone that is only 8!
Comment by llii husn on 2009-10-16:
im only 12 and i want to become a ceo 2
Comment by Justin DeJesus on 2009-10-18:
Remeber my name Justin DeJesus 4 I will become a C.E.O. I am 14 and I can’t live a day I will not live if I do not devote my life 2 this. I live in the biggest city N.Y. and will become one of the biggest C.E.O.’s of this world and will stop at nothing 2 accomplish this fact any one who doubts will be eradicated by the inevitable fact!
Comment by jake on 2009-10-22:
hey… all of you kids who are talking about wanting to be a CEO… I’m 15… and i also strive to be successful in a business type career. however, that is ridiculous to say that you would take down anyone in your way to becoming a CEO? is being aggressive and hurtful towards other people worth a title? when you die, will you be satisfied with the life that you led? Money does not buy happiness. “All I want is to become successful” (S.K.) “…i will demolish anyone in my path to victory!!!!” (Anthony Morgan) I will be successful too, but success is not my only goal. Peace, happiness… what about those? I understand being a Great ceo sounds nice, but what about being a Great person? What about being truly fulfilled?
Comment by Lukas Carvajal on 2009-11-02:
I want something to do with business when i’m older. It doesnt necessarily mean being a CEO, but in order to become any high earning position in these fields, I certainly believe correct spelling and attending good schools probably does the best. I mean how can you want to be one of the leading women in the business world, when you can’t even spell “I am a woman” at the age of 15. I’m 15 too, and I think your ideas of taking out people in the way are ridiculous. I would think that in order to be successful you have to create good connections, and be a hard worker at the same time. Maybe to overcome any obstacles in your path would be a better thing to tell the first person you get interviewed by.
Comment by That Guy on 2009-11-03:
I am 24. I will have two doctorates by the age of 26-27 (both highly pertinent to the field of products supplied by the corporation that I plan to bring through the next decade). I plan to enter torward the front. I plan to climb to the top in 5 years post graduation. The main question is whether the company that I am planning to work for is ready to increase its profits by 66.6 percent?
Comment by Ryan J Bayko on 2009-12-26:
I had almost forgotten that I had commented this page almost a full year ago. Believe me I was not looking for this website either, but I was searching my name and I came across this page again. I was just a little creeped out untill I realized this is the internet and that can happen.
I have changed the way I want my future to be now. I plan on getting into computer security. Now that I have my computer class,I do take the oppourtunity of taking full advantage of my class time. Instead of becoming a CEO,
Comment by Ryan J Bayko on 2009-12-26:
cont..
I want to get a federal job and work for the government. It is a goal I plan on reaching.
Comment by Albert Kranz on 2010-01-24:
I am 15 and I also plan on becoming a CEO but I think it would be better for myself and much more agreeable with everyone else if I make supporters and allies of my competition rather than simply demolish them.
Comment by Halfwaythere on 2010-01-29:
I almost never post responses to anything however, I felt compelled to respond because of the number of kids that have replied. First, let me say I applaud you all for thinking of your future seriously. A lot will come your way between now and “CEO Time” and most of you will change your mind on being a CEO. Whatever you decide to stick with, you will still need the qualities a CEO needs in order to be successful at what you are doing.
Before I continue, I want to point out that I work for one of the companies on the list of 19 and I have been for over 10 years. Though I am not a CEO, I am on my way.
Second, in DIRECT RESPONSE TO “TRUTH” that posted about race, stop selling yourself so short. Though I will never mislead you that race and sex plays a factor, it’s is NOT the determining factor. If you tell yourself “I can’t” then you never will. Period. My company has had several presidents that were women and of different races. The problem is if you are ignorant, you will never be a CEO. Now, don’t take that personally as a put down. Ignorance is lack of knowledge. Educate yourself beyond what basic training that is required. Most of all, learn office and coporate politics. I’m sorry to say Truth that your line of thinking is far too common and is what forces people to stay stagnant.
Lastly, to be a leader (which is what a CEO is), you MUST have drive. You MUST be a go getter. The reason there are so few CEOs is because there are few that have what it takes. No school can teach you that. If you always push to the summit and beyond, you will do great regardless of what you choose. Moreover, you will be much more prepared and qualified for a CEO position. Good luck to you all.
Comment by WWS on 2010-01-29:
Halfwaythere,
Thanks for your comment – you make excellent points.