Why “Skin in the Game” Matters for Executives

Executives operate within a structured set of responsibilities that require balancing multiple priorities simultaneously. These include organizational efficiency (increasingly supported by AI), maintaining a healthy culture, preserving motivation, and planning for long-term growth rather than focusing solely on the current year.

Executives are also part of an Executive Leadership Team and report to a Board of Directors. The Board aims for the company to succeed and provides guidance and oversight. In return, executives are expected to deliver predictable results, demonstrate ongoing business growth, and maintain KPIs that meet or exceed industry standards.

The distinction is in the level of involvement:

Executives typically have the most “skin in the game.” They work within one organization, are deeply immersed in the business, and understand the impact of each decision—whether related to investment in people, organizational restructuring, or the strategic role of different business units.

Business performance is the outcome of many decisions compounding over time. Achieving meaningful results often requires patience and sustained focus.

For these reasons, “skin in the game” is not only relevant but essential at the executive level. It reflects the weight of responsibility placed on executives and the degree to which the organization relies on their judgment, commitment, and long-term perspective.