Its Lonely at the Top of Cannabis Mountain
“Try walking a mile in my shoes” MSO CEO
My assertion is backed up by data. Harvard Business Review found that 50% of surveyed CEOs experienced feelings of loneliness in their role and 61% of these believed it hindered their performance.
As a cannabis executive muse, I believe that the level of loneliness is far higher in medium to large MSOs & LPs.
Maligning cannabis CEOs is a pastime for some. Much of this scorn is warranted given the performance of individual companies and the behavior of many leaders.
However, the reality is more nuanced.
Despite appearances, the CEO role is not necessarily a plum job. In fact, it can suck most of the time because of firm-specific and well-known industry challenges.
This reality has led to a talent exodus, both for voluntary and involuntary reasons. For the remaining leaders, theirs is typically a disheartening and lonely existence that comes with significant productivity, succession, and cultural ramifications for the firm.
Instead of knee jerk criticism, many should extend some empathy to CEOs.
Consider this-
➡️ The juice is not worth the squeeze
Pay is not commensurate with the position’s difficulties and demands. The average base salary of an American weed CEO is US$402K. This is at least 60% below the average salary of a non-weed CEO in a similar size firm.
Share based compensation in cannabis sounds lucrative except that every stock has been in the toilet for 4+ years, with little prospect of a major recovery (save big share buybacks).
Promoting from within – always ideal – is hindered by the lack of a quality bench, leadership development and succession planning in many firms.
➡️ Sector headwinds make this a very tough role
If you know, you know. Or go talk to a LP or MSO CEO.
Adding to the loneliness is a lack of help. In many cases, CEOs are missing peer support, performance coaching and proper onboarding, and all too often, executive assistants.
➡️ There aren’t always great alternatives to the incumbent CEO
Attracting good outsiders can be difficult given low salaries and our industry’s reputation. Parachuting in a rock star often doesn’t pan out in challenging operating and cultural environments.
A CEO's physical and mental wellbeing is important from a human and corporate perspective. Shareholders and employees should want talented, motivated, and empowering leaders to captain the ship.
Fundamentally, it is hard to build a profitable business with a CEO who is disengaged, beaten up or has one foot out the door. It is time Boards started to take this hidden but serious problem more seriously.
Call me. I will lend an empathetic and supportive ear, and help unlock your leadership potential
#CEO #MSO #LP #management #leadership #Boards