Scion CEOs Kinda Suck

Author:
Publish date:

You know how you thought the boss’s kid was kind of dumb but couldn’t say anything because he would be running the company some day? Turns out you should have spoken up.
A new study shows that companies do worse when a relative succeeds an outgoing CEO. That’s not very surprising. When we were working for LBO guys, their first move was often to axe any management with blood ties to a company’s founders.
But now that it’s been shown mathematically, you know what to do, right? Exactly! Start a hedge fund shorting companies run by elderly CEO’s whose first born child is a boy (because daughters are less likely to be chosen as successor CEOs).

Meet My Son, Your New CEO
[Slate]

Related