Company statistically fired twice CEOs in bad economic times as in good. Of course, many managers have lost their jobs recently. However, this new wave of layoffs masks deeper trend: over the past two decades, the average tenure as CEO was cut in half, and still less than half the time, the reason for their departure was solely due to low productivity. Experts disagree on the reasons for the failure of the general director, but variables can be grouped into two main categories: internal variables are those CEO may affect, for example, competencies, policies, compensation and stock ownership, the exogenous variables are those that managers can not control including characteristics Council, which will be judged on their performance, the industry in which the company operates, and the presence of a strong successor. Although no one knows exactly what causes crashes CEO, knowing what factors potentially contribute most to the failure of the leaders will be better equipped to succeed. "Hide
by Guido Stein Martinez, Javier Capape Source: IESE-Insight Magazine 8 pages. Publication Date: March 15, 2010. Prod. #: IIR023-PDF-ENG
Related Case Solutions & Analyses:
To Trade or Not to Trade: NAFTand the Prospects of Free Trade in the Americas
New Approach to China: Google and Censorship in the Chinese Market
The Next Emerging Giants Take Flight
Implementing Global Corporate Citizenship: An Integrated Business Framework
Note on Water
Transforming Business Education to Produce Global Managers
Rwanda: National Economic Transformation
Financing the Theun-Hinboun Hydroelectric Project
Capitalism and Democracy in a New World
Purinex Inc.
