... 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.
Liberum believes that senior management change is one of the most important areas for investors to follow.
Who is Liberum
Liberum Research is a research firm focused on C-level and Director management change in public companies. Liberum launched its Management Change Database in January 2005 and provides alerts and feeds to hedge funds and professional service companies. There are typically 2,000 or more changes per month. Liberum is a division of The Wall Street Transcript. Liberum's Website