• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

3

Current price of oil as of June 11, 2026

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

3

Current price of oil as of June 11, 2026
Commentary

Commentary: Why Do CEOs Like Chipotle’s Overstay Their Welcome?

By
James Bailey
James Bailey
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
James Bailey
James Bailey
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
December 19, 2017, 9:39 AM ET

Chief executives are expected to instinctively know how to lead and when to leave their company. Balancing the tension between leading and leaving requires an executive who has deep empathy of workplace rhythms and a showman’s instinct for timing.

When Steve Ells, CEO of Chipotle Mexican Grill (CMG), stepped down in November from the fast-casual restaurant chain he founded in 1993, he was just the latest in a long line of CEOs who had overstayed their welcome at the expense of their companies.

The decision by Ells—and his board—was guided by the belief that the company needed a turnaround artist to solve Chipotle’s multiple problems. Plagued by food safety failures and organizational miscues, Chipotle saw its customers and stock value decline under Ells’ leadership. The very skills that made Ells so successful as a founder were not compatible with the new exigencies.

It’s a question neatly turned by The Clash’s 1982 song, “Should I stay or should I go?”

I first discussed the idea of a CEO lifecycle a decade ago with Steven S. Reinemund, the past chairman and CEO of PepsiCo (PEP) and then dean of the Wake Forest University School of Business. Steve believed that lifecycle was just five years. He broke it down as follows:

In year one, the new leader gets to know the company, builds trust and relationships, and establishes a loyal coalition. Year two is spent formulating a strategy and achieving maximum consensus. For years three and four, the executive is operating in full swing and the company is responding. By year five, the CEO should be attending to succession and planning a seamless exit strategy.

(By the way, Steve stayed as PepsiCo’s CEO for exactly five years, though was coaxed into staying a sixth at Wake Forest.)

Under this progression, a good CEO can create so much transformational change that at some point he or she is no longer suited or needed there. It becomes a matter of fitness: Talented executives change the workplace in a way that their skills are no longer needed. In a very real way, they created their own expiration date by, ironically enough, being good at what they do.

The example that most captures “expiring” leadership fitness comes from one of the world’s greatest leaders, Winston Churchill. In October 1940, Churchill took power at Britain’s bleakest moment. Britain was reeling from the defeat at Dunkirk and fearing the Nazis would cross the English Channel. The moment called for a leader who could bring Britain’s sparring political parties together and fight with vision and strength. A churlish and unique character, Churchill bravely succeeded where anyone else would have failed.

But by the end of the war in Europe, five years later, Churchill’s Victorian-era ways were out of mode. A one-time reformer, he wasn’t suited for the tidal change he’d created in what was now a war-weary nation. It was not lost on his political opponents, though, who now had the authority (thanks to him) to respond to voter calls for social reforms. When the public went to the polls in July 1945, Churchill lost resoundingly. (Though, he returned briefly in 1951 for reasons many historians refer to as ‘nostalgia.”)

 

Hard as it is to reconcile, if chief executives successfully develop the competencies of those around them and remake a culture that has grown fallow or turned a troubled company into a high-performing and agile operation, then the next logical step is to leave.

Counter-intuitively, good leaders do themselves out of a job. They make themselves irrelevant. That’s hard to stomach. It’s a gut punch that deflates the fragile human ego. That’s why it’s harder to leave than to stay. Overcoming the natural inclination to cling to a situation where one’s done especially well is a mark of a great executive. Properly timed exits will safeguard the probability that their transformations will live beyond them.

The answer to “should I stay or should I go” depends on whether executives’ talents are—after his or her transformations—still compatible to the organization current needs.

James R. Bailey is a professor of Leadership at the George Washington University School of Business.

About the Authors
By James Bailey
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

Three ways that Asia’s enterprises are adopting AI—and where they are falling behind
CommentaryOracle
Three ways that Asia’s enterprises are adopting AI—and where they are falling behind
By Garrett IlgJune 11, 2026
12 hours ago
gordon
CommentaryVenture Capital
Gordon Ritter: I predicted AI’s learning loop a decade ago. The doomers are still measuring the wrong thing
By Gordon RitterJune 11, 2026
21 hours ago
bessent
CommentarySocial Security
Social Security and Medicare are heading toward insolvency. Congress has 6 years to act
By Steve H. Hanke and David M. WalkerJune 11, 2026
23 hours ago
Digital sovereignty isn’t the same thing as digital isolation. Asia’s governments should be careful
Commentarydata sovereignty
Digital sovereignty isn’t the same thing as digital isolation. Asia’s governments should be careful
By Leonard LimJune 10, 2026
2 days ago
tim
CommentaryAirline industry
Merlin CTO: autonomy can rebuild the foundation of aviation — and national security
By Tim BurnsJune 9, 2026
3 days ago
dewar
CommentaryLeadership
I founded McKinsey’s CEO practice: Here’s why operational excellence is a liability right now
By Carolyn DewarJune 9, 2026
3 days ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
20 hours ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
4 days ago
SpaceX's record IPO has Wall Street torn between a Musk 'holy grail' and a $135-per-share leap of faith
Startups & Venture
SpaceX's record IPO has Wall Street torn between a Musk 'holy grail' and a $135-per-share leap of faith
By Marco Quiroz-GutierrezJune 11, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.