I am sure that you must have seen the headline for news that contain fortune 500 CEOs and you see, this CEOs make the headline when they make obscene amount of money than most people can dream of in their entire lifetime. Sometimes I wonder why these CEOs are paid real high or why they are given so much shares to make them so rich.
In 2021, Apple’s CEO, Tim Cook, earned $853 million in compensation. This figure, staggering as it is, pales in comparison to Rivian’s CEO, RJ Scaringe, who received $2.3 billion, or Elon Musk, who was awarded $10 billion in Tesla stock. Despite public outcry over these immense sums, the reality is that CEO compensation isn’t likely to change. So, instead of lamenting these figures, let’s explore how you can become one of these high-earning CEOs.
Actually, no matter how much people complain about the ridiculous amount that CEOs take home as compensation, and no matter the press release on the internet, it will not change a thing. So let's discuss how to be one of them than being on the other side of the coin.
Before you start to think of being a founder, out of the 500 fortune500 company CEOs, only about 21 of them own the company which means that most of them do not own the company, they are also employees just like you but then if you are willing to be a CEO and you want to still own the company, then create a business, do not get fired by the board of directors, and do not retire. Viola, you are a CEO but then if you look at the odds of being a CEO of a fortune-500 company or a blue chip company is very low seeing the 21 over 500 ratio, so it will be better to get there by going through the corporate ladder.
To become a CEO in any of these fortune500 companies, you need a degree as every single CEO who didn't found the fortune500 company they are overseeing got a degree and from the 21 founding CEOs, about 16 have a bachelor's degree. Trust me, those who dropped out of school had their business doing well and had to drop out to face it squarely. So if you are going to become a CEO in any of the fortune500 companies, you need to go to college.
If you are going t o college, then you need to start with one, Harvard. Actually, other ivy-league schools are represented but Harvard seems to be the school for CEOs. 41% of these fortune 500 CEOs have an MBA. While you pick the school, do not forget to network as this is important. So, go to an Ivy league school and then connect with people while studying MBA full time or part-time.
I guess you are about to get an MBA as I speak but then hold your peace because there is another thing to look out for in fortune 500 CEOs and that is their undergraduate degrees. Interestingly, about 75% of Fortune 500 CEOs have undergraduate degrees in engineering. This trend suggests that a technical background can be beneficial. Moreover, the average age of a Fortune 500 CEO is 57 years, indicating that reaching the top takes time.
If you are looking to be CEO of a startup you think will become a part of the fortune 500 company list, then you should look at companies that focus on Tech, finance, health care, or consumer goods but better still, start your career in a very good company with investment backups. Then you need to work real hard, ensure you are at the right place at the right time, make other employees see you as indispensable and then wait for when the founder is looking for a CEO to become one.
Let me break it down for someone in the finance institution. You can start with an analyst position, then to a Team Lead, then a Manager, and you hold an executive position. Remember to buy shares as you go up the ladder. Position yourself in a way that you can make a company lose money through it investors or make more money, and you might be one of the fortune 500 CEOs or a CEO in one of the big companies.