The hazards of being CEO

They have high-profile, high-paying jobs that may be the envy of many. But CEOs are subject to pressures and demands for which they can’t prepare.

Here’s a look at the outsized expectations placed on them, the seemingly small ways they can blow it and how they can manage to avoid the landmines.

The impossible job of being CEO

In exchange for all the benefits that come with winning the corner office, CEOs have to satisfy a long and sometimes contradictory to-do list. Hit quarterly numbers. Innovate for long-term growth. Think deeply. Decide quickly. Be tough. Be vulnerable. And recognize that you’ll be under constant pressure to show positive results and conduct yourself as an exemplary leader who avoids scandal and gets on with the board and the management team. Otherwise, you could be shown the door.

Trial by fire for first-time CEOs

Becoming a CEO for the first time is the ultimate stretch assignment because nothing you’ve done to date resembles what you’re about to encounter. The stakes are higher and more complex. And realize, too, just like anyone else facing a big professional challenge, even CEOs can suffer from impostor syndrome right out of the gate. Here’s what every first-time CEO should know going in.

Mistakes are inevitable, but some can be disabling

No CEO can get everything right. But one of the biggest regrets former CEOs often cite is having taken too long to fire someone they knew was a bad fit on their executive team. They may have felt guilty, or worried about how investors and employees would react. Or they may have thought they could fix the situation. Whatever the reason, they let a dysfunctional situation go on too long, undercutting the effectiveness of their team. That’s among the four most debilitating mistakes CEOs should avoid if possible.

Taking the right risk at the right time

A landmark study has shown that executives who take big risks early on in their careers typically nab the CEO job a decade sooner than it takes the average executive who ascends to the post.

Whether as CEO or as an executive eyeing the corner office, top players know they have to take smart risks to ensure their companies stay competitive. But the hard part is deciding whether a big move – like making a key hire or acquisition, changing strategy or launching a new product – is worth the risk. Here are five questions leaders can ask themselves to help decide.

Why CEOs are paid so much

Corporate CEOs at public companies often aren’t paid nearly as much as top executives at private equity and hedge fund firms. But their paychecks are more closely scrutinized because their companies have so many stakeholders and because they are so much larger than that of the average employee.

Boards consider a number of factors when determining CEO pay, including experience, pay levels at peer companies and whether a candidate is coming from outside the company. There are also several ways they seek to tie pay to performance but often such arrangements are paidout over time and can obscure the truth of how much a chief executive is actually getting.