Booz and Company just released its annual CEO succession study. This year's study makes a counterintuitive argument. According to a synopsis of the the study by Per-Ola Karlson, Gary L. Neilson and Carlos Webster the study,
... found little correlation between poor short-term performance and CEO dismissals over a ten-year period. In fact, the worst-performing CEOs actually faced a low probability of being forced out of office in the short term. The study, which will be published in the Summer 2008 issue of strategy+business, looked at CEO turnover at the world’s 2,500 largest publicly-traded corporations.Liberum does not find the Booz results meet with similar conclusions with our own studies. Liberum typically covers a larger universe of companies but even so there remain a significant number of companies that pushout CEOs due to short term performance. Determine for yourself check out the Booz and Company study.
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