Investor influence over CEOs grows
Investor groups are having an increasing influence over the fortunes of company chief executives, with more than a third being ousted out of their jobs for not meeting performance targets.
Link: FDs slam fat cat packages
Figures which will give heart to the anti-fat cat lobby show that as many as 39% of CEOs that quit their jobs in 2002 were forced out, compared with 25% a year ago, research by management consultants Booz Allen Hamilton found.
Overall involuntary successions increased by 70% while overall numbers showed that CEOs are falling by the wayside in record numbers following companies implementing higher standards of performance.
In addition, despite American companies dominating the broadsheets for all the wrong reasons, the biggest increase in CEO successions was in the Asia/Pacific region and in Europe.
David Newkirk, vice president of Booz Allen Hamilton said: ‘Business leaders are enduring scrutiny and pressure unseen since the Great Depression
‘The CEO mystique has all but evaporated, and director activism has replaced crony capitalism in the boardroom.’
