Lets Celebrate Being "Fired"

When a CEO departs before a major milestone like an exit, acquisition, or IPO, we often hear euphemisms like “stepping aside,” “finding a growth partner,” or “bringing on adult supervision.” While these soften the reality, the truth is that the board is effectively firing the CEO. This may sound harsh, but recognizing this potential is crucial.

In most startups, the founding CEO is also a board member with a fiduciary duty to act in shareholders’ best interests. This means ensuring the most capable leader is at the helm to maximize the company’s potential. Founders need to objectively assess if they are the right person to continue leading.

Clinging to the CEO title for personal reasons can hinder both the company’s growth and the founder’s financial success. Sometimes, bringing in new leadership is the best way forward. I’ve seen founders who choose not to be the CEO from the start—a fearless approach that acknowledges leadership transitions are inevitable.

Founders can play valuable roles within their organizations while still being compensated—remaining as co-founders or focusing on special projects. The idea that the founding CEO must always lead is unrealistic and can harm the company’s future.

I encourage all founding CEOs to envision their company without themselves in the CEO role. Often, stepping aside signifies significant company growth that requires new leadership to reach full potential. If a founder remains simply because no one else wants the job or the company isn’t thriving, that signals deeper issues.

Let’s reframe the “ceremonial firing” of the founding CEO as a positive, necessary step in a company’s evolution. Embracing this change can lead to greater success for the company, substantial returns for shareholders, and life-changing wealth for the founder and their family. Fellow founding CEOs, let’s celebrate being “fired.”