Companies statistically twice as many dismissed CEOs in bad economic times, as well. Certainly, many executives have lost their jobs lately. But this new wave of layoffs masks a deeper trend: Over the past two decades, the average tenure of a CEO has halved, and yet, in less than half of the cases the reason for their departure was solely because of poor performance. Experts are divided disagree about the reasons for CEO failure, but the variables can be divided into two broad categories: endogenous var … Read more »

Companies statistically twice as many dismissed CEOs in bad economic times, as well. Certainly, many executives have lost their jobs lately. But this new wave of layoffs masks a deeper trend: Over the past two decades, the average tenure of a CEO has halved, and yet, in less than half of the cases the reason for their departure was solely because of poor performance. Experts are divided disagree about the reasons for CEO failure, but the variables can be divided into two broad categories: endogenous variables are the ones who can influence a CEO, such as skills, remuneration policy and stock ownership; exogenous variables are those that CEOs can not control, including the properties of the boards that will judge their performance, the industry in which the Company operates and the presence of a strong successor. Although no one knows exactly what causes CEO failure to know what factors potentially the largest contributor to failure CEOs better equipped to make successful.
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from
Guido Stein Martinez,
Javier Capape
Source: IESE Insight Magazine
8 pages.
Release Date: 15, March 2010. Prod #: IIR023-PDF-ENG
How the mighty are fallen HBR case solution

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