What do our CEO's do?
By siliconindia   |   Saturday, 30 April 2011, 01:33 IST   |    3 Comments
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Only the CEO has the monopoly to make decisions as to how much of time is to be devoted to a number of possible work related activities or leisure. It is interesting to see how CEO's allocate time between different activities. The productivity of the firm is best yield when the interest of the firm and the CEO's is aligned. And in such circumstances time allocation depends entirely on the firm's objective. However when the interest of the firm and CEO is not aligned time allocation is determined by both firm's objective and CEO's. Time allocation reflects partial differences in the quality of governance that determines the alignment of CEO's interest with the firm's. Insider outsider allocation is co-related with the firm's performance. And time spent with insider's shows positive impact with several measures of firm performance. However outsiders are not. An average CEO works 47.7 hours in 5 day week. Out of which 36.8 hours; 80 percent work is spent in activities that last only 15 minutes or longer. A CEO's 80 percent of time is spent with other people. Meeting takes up 60 working hours. Phone calls, conference calls and public events take 25 percent. And an average CEO spent 15 percent of his time alone.

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