Tuesday, May 22, 2007

Boards More Likely to Oust Underperforming Chief Executives, a Study Finds

A new study examining turnover among top executives has found that corporate boards were nearly three times as likely to pull the trigger on failing chief executives than they were a decade ago.
Nearly one of three chief executives who departed last year were either fired or forced out for performance-related reasons, according to the analysis by the global management consulting firm Booz Allen Hamilton. That compared with roughly one in seven departing executives ousted in 1996.
While the study concluded that the wave of executive turnovers appears to have leveled off from its high point last year, shareholders and boards were still keeping the boss on a short leash.
Go to Article from The New York Times>>

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