Salvatore Stella, who is the CEO of the company Tessilo, Ltd., assumes that it is appropriate to find another specialist in his place. The realization of this intention requires additional funding from the investor. However, during the negotiations, Paul Pluto, who is the investor, introduces an opinion that it may appear unnecessary, and Salvatore Stella should remain in this post. In case after some time the necessity of employing a professional CEO becomes evident, the partners agreed on special conditions. Whether Salvatore Stella stays the CEO, he receives 5% shares from the stock option pool. In another case, he is required to sacrifice his part in favor of Paul Pluto. Therefore, the purpose of this paper is to discuss the management structure option.
From my perceptive, the substitution of the CEO should be reasonable. The motivation for this action may imply the lack of skills and knowledge of the current one. In case Salvatore Stella is aware that he needs professional advice, and he is incapable of running the business on his own, he should adhere to this option. It should be noted that in these circumstances, it may present a more beneficial solution to update his knowledge by completing a business course. However, whether Salvatore Stella needs the urgent help of a professional CEO, this possibility may appear to be resultative. The second condition for making this decision should address the investments, which are required to employ an additional specialist. From my point of view, whether Salvatore Stella needs professional and urgent help, he should seek a decent and prominent worker. In addition, he is required to sacrifice his shares from the stock option pool. Therefore, the protentional employee should be specially qualified, experienced, and ambitious. I believe that these are two major reasons, which may lead to CEO employment.
However, I am convinced that despite the professional CEO employment, the founder should also remain in leadership positions. Leaving the enterprise without personal participation may be risky and even lead to losses. There is a likelihood that a novice would not be honest and adhere to stealing or cheating. Moreover, a new employee may not understand the concept of the company or not fulfill all the responsibilities. Consequently, keeping the founder in a company is highly likely to be an advantageous solution. Salvatore Stella will be capable of introducing the working duties to the new staff member and providing essential support. In addition, he would also have the possibility to control the performance of the new CEO and decide whether it is worth trusting him or her.
In case the founder remains in the company, I consider it appropriate to divide responsibilities after training a new employee. This way, the CEOs would not bother each other to fulfill their duties. Furthermore, whether the responsibilities are divided, they can perform more points. Moreover, they may balance each other by compensating for their weak and strong qualities. Such collaboration will definitely benefit the corporation in the long run, and their results will recover the costs, Salvatore Stella is required to pay.
It should be mentioned that in case of both employing a new CEO and keeping Salvatore Stella in a company, it is essential to establish appropriate control and support structure. It may be an analog of the council, which should unify the workers, which are qualified and have long working experience in the company. Whether Salvatore Stella is surrounded by staff members, who are trustful and honest, including the CEO, he even may be replaced from the CEO position in the future.