Corporate Structure

Corporate structure evolved as a result of the growth of companies and their public nature. A public company is one whose ownership is shared among a large number of people who have purchased their power by investing in the company through the obtaining stocks. We have all heard of CEOs, CFOs, presidents and vice presidents, but what is their relationship to each other and to the company that they lead?

Briefly, a corporation is a company or business which has legal rights as an entity separate from its owners. The result of this status is that the liability of the owners is limited and shares are issued as easily transferable stock which allows shareholders certain controls of the company.
Due to the fact that the company is publicly owned a need is created for management and ownership to function separately. This is a two-tiered structure where the board of directors (or governors) is elected by the shareholders and oversees that the company is functioning with the welfare of the shareholders in mind. The second tier is the upper management, responsible for the successful functioning of the company. The upper management is hired by the Board of Directors.

Corporate Guidance from Dennis Carey

Dennis Carey recruits corporate leaders to fill the positions of CEO, Chairman of the Board, and Board members. He knows what it takes to bring a faltering company going through challenges up to the successful outcome they can achieve. Whether it is hard economic times or the natural event of executive corporate transitions, Dennis Carey will guide the company through it, helping to bring a positive resolution and outcome to the event.

Surviving in a Recession

Yes, this is a difficult time to run a business, but as so many recessions in the past have shown, crisis breeds opportunity. Both Carnegie Steel and Hewlett-Packard were created during long depressions.

In this type of environment when money is scarce and markets are volatile, it is not easy to keep morale up in many companies. As Dennis Carey, a senior partner at Korn/Ferry International explains, this is the time to reevaluate techniques that worked for your company during boom years. As he says, "You can't rely on a peacetime general to fight a war. The wartime CEO prepares for the worst so that his or her company can take market share away from players who haven't."

One key aspect of many businesses right now is to get the funds they need to help their businesses to grow. Only those businesses that can show strong balance sheets will stand a chance.

CEOs Taking Action - Quickly or Slowly?

When a new CEO comes into a company, the rest of the company can certainly anticipate that there will be many changes. The question, however, is how quickly those changes will occur. According to executive recruiter Dennis Carey, the depth and speed of those changes usually has a lot to do with the hiring circumstance of the CEO. If someone has been promoted from within, and they are working with a well-run company, they may greatly limit the turnover rate. If, however, a CEO has been brought in from elsewhere, and the company is failing, the executive changes will be quite fast and sweeping.

Dennis Carey continued to explain that under these later situations, the first jobs to turnover are usually the CFO, the general counsel, and the head of human resources.

Kevin Coyne, a management consultant and a professor at Emory University’s business school, said that CEOs typically decide on their strategy within the first 60 days. They will group the workers into four categories: those who will be invaluable; those they are keeping, but who aren’t exceptional; those they are keeping for now but will eventually fire; and those they are firing right now.

Publications from the G100

In addition to the vast array of benefits provided by the G100 to its 100 or so CEOs, they also receive regular publications. Founded in the year 2000 by executive recruiter Dennis Carey, the G100 is a forum that meets biannually to discuss business and to offer a location for CEOs to learn from each other.

As part of the membership, CEOs receive a monthly memo that includes important news and concerns for CEOs. They also have a publication called Insights that is produced twice a year and that summarizes their meetings and has original, previously unpublished articles by some of the G100 advisors.

One month prior to each meeting, the G100 also sends each member a briefing book featuring articles and interviews to prepare for each upcoming session.

Advisors to the G100

In addition to the camaraderie and knowledge gained by the members of the G100, a private group for CEOs started by Dennis Carey in the year 2000, they also have an advisory group. This small group includes top advisory firms whose top representatives come to their biannual meetings. They work closely with the CEOs at the meetings to enhance the overall discussion and to focus the agenda.

The advisory members help the CEOs to focus their discussion and to look at real, applicable and relevant issues as they unfold in the business world today. Current advisors to the G100 today include: Accenture; Deloitte & Touche USA; Goldman Sachs; McKinsey & Co.; Merrill Lynch; SSA & Company; Skadden, Arps, Slate, Meagher & Flom; Spencer Stuart; The Parthenon Group; and Vedder Price.

G100 Makes a Difference

The G100 meetings, created by Dennis Carey, invite 100 of the most prominent CEOs to meet twice a year to discuss business topics off the record. A regular moderator of their meetings, Jack Welch, finds the G100 to be a unique opportunity where CEOs can exchange their best practices with their peer group.

He sees, after each session, that CEOs leave with fresh ideas that they can immediately implement. They also, Mr. Welch explains, receive a feeling of contentment that they’ve contributed to the discussion and offered their experience to others.

Set in New York City twice a year, these Thursday evening and Friday morning discussions offer a wealth of opportunities for CEOs today.