CEOs don’t call the shots

FOR most new chief executives, the real test of power begins in the boardroom. Running the company is the easy part. Managing a collection of overseers with diverging priorities is far trickier.

Leadership transitions at large listed companies are fraught even in stable times. That is why boards often prefer internal candidates. Yet even lifers are rarely ready for what awaits once they take the top job.

“Imagine the shape of an hourglass,” says Ty Wiggins, who coaches new CEOs. “Chief executives sit at the pinch point. It’s a real shock for so many... they don’t call the shots.”