How to Fire an Executive

Firing an executive is one of the most difficult and consequential actions a CEO can take. Unlike other firings, an executive termination is almost always a symptom of a systemic failure in the CEO's hiring or integration process. Handling it correctly is critical for the health of the company and the morale of the team.

The 4-Step Framework for Firing an Executive:

Step 1: Root Cause Analysis

Before you act, you must understand why the hire failed. The problem is not that the executive "sucks"; the problem is that you hired the wrong person. Analyze your process to identify the mistake:

Poor Job Definition: Were you unclear about what you needed?
Hired for Lack of Weakness: Did you hire a well-rounded candidate who was mediocre in the one area where you needed them to be world-class?
Hired for Scale Too Soon: Did you hire someone for the company you hope to be in three years, who is ineffective at the company you are today?
Failed to Integrate: Did you fail to properly onboard the executive and set them up for success?

Understanding the root cause is the only way to avoid repeating the same mistake.

Step 2: Inform the Board

Communicate Individually: Inform board members one-on-one before a formal board meeting. This is especially important if a board member referred the candidate.
Present Your Analysis: Start by explaining the root cause of the failure and your plan to fix the hiring process. This builds confidence that you are learning from the mistake.
Get Approval for the Severance Package: Executive severance packages are larger than normal. Have a fair package approved by the board before you have the conversation.
Preserve the Executive's Reputation: Frame the departure as a mutual decision or a mismatch. Trashing the executive makes you look bad and signals to the board that you don't take responsibility.

Step 3: Prepare for the Conversation

This is a conversation the executive will remember for the rest of their life. Get it right.

Be Clear and Direct: Use decisive language ("I have decided..."). Do not equivocate or leave room for negotiation. This is a firing, not a performance review.
Explain the Reasons: Clearly and concisely explain why it's not working, based on your root cause analysis.
Have the Severance Details Ready: The moment they are fired, their focus will shift to their own future. Be prepared to immediately discuss the details of their exit package.
Let Them Keep Their Respect: You cannot let them keep their job, but you can and should let them keep their dignity. Work with them on the public and internal messaging of their departure.

Step 4: Communicate to the Company

Act Quickly: All communication should happen on the same day, within a few hours.
Correct Order: Inform (1) the executive's direct reports, (2) your executive staff, and (3) the rest of the company.
CEO Steps In: The CEO should temporarily take over the executive's role to ensure continuity and to gain a deeper understanding of what's needed in the next hire.
Be Honest: Treat your employees like adults. Explain the change without trashing the departing executive. The best employees will be watching closely to see how you handle the situation.

Tags: #leadership #management #hiring #firing #executives #HR #communication #culture #hard-things