Management Turnover as Change Agent

Wednesday, March 4, 2009

Recommended Reading - The Smart Execs Leave Before The Fall, TechCrunch

TechCrunch’s Michael Arrington wrote a brief blog today examining what executive exodus’ might mean for a company. He points out,

When a smart, ambitious executive who isn’t the CEO leaves a company, it isn’t necessarily a sign of trouble…

…But when bunches of them leave, watch out. With obvious exceptions, like a sale that results in a lot of liquidity being sloshed around the founder ranks, fleeing talent is an indication that a company is about to go sideways, or worse. There’s a reason why most of Yahoo’s executive talent bailed out in 2007 and 2008. And that’s just a high profile example… 

I refer to this article because it specifically reaffirms a conviction Liberum Research maintains on the importance of monitoring executive changes at companies.  Arrington wrote this piece as a direct consequence of news that a number of top executives were leaving MySpace to start a new company.    The real significance of the story is the importance that management change could mean for a company.  Check it out for yourself. 

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