Sending A Warning To Lloyd, Mack and Dimon: Shape Up or Ship Out

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Are you a CEO (who found his/her way over here from SuperMogul)? If so, drop the blow, dead hooker and, for those of you driving, the bottle of Jack. Your shareholders may try and use these things against you! CNBC reports that—in addition to Forbes.com employees, research analysts, and Kamikaze pilots—turnover among chief execs is high, especially the compulsory, by vote of the board kind. In a study by Booz Allen, it was found that from 1995-2006, the annual turnover of CEOs grew 59%; the number of CEOs who left their companies as a result of conflicts with the board increased from 2 to 11% during that period. In ’95, only one in eight CEOs were forced to leave office, versus last year’s one in three.
And, to add insult to injury: while in ’95 underperforming CEOs were permitted to stay in office just as long as their high(er)-performing colleagues, last year, the guy with above average returns was “nearly twice as likely as one delivering below-average returns to remain CEO for more than seven years. In 1995, underperforming CEOs stayed in office as long as their high-performing colleagues.” Those fascist shareholders want moral and performance accountability? What’s next, mandatory monthly drug tests and a bible in the nightstand? This is unconstitutional.
CEO Turnover Remains High As Boards Get Tougher, Survey Says [CNBC.com]

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