John Montalbano didn’t like it, but it was the right thing to do. As the CEO of RBC Global Asset Management – Canada’s largest asset-management firm – he announced that he would be stepping down.
No, it didn’t have to do with poor results – RBC Global Asset Management has consistently been rated at or near the top of its category. And it didn’t have to do with falling out of touch – Montalbano was just 50. It had to do with a belief.
‘After analyzing thousands of companies as a fund manager and as an analyst, I came to a view that CEOs have a due date of eight to 10 years. After that, they either become stale or start to close doors for people around them who are ready to step forward.’
‘It didn’t feel good, but it felt right. To me, that’s how leaving should feel: it can never be about you; it’s got to be about your business.’
It can never be about you; it’s got to be about your business. Knowing when to step aside is just as important as knowing when to take the reins.
What’s best for your organization?