Question
In a recent Wall Street Journal article, the issue of CEO tenure was discussed. As of 2018, the average tenure for a Standard & Poors
In a recent Wall Street Journal article, the issue of CEO tenure was discussed. As of 2018, the average tenure for a Standard & Poors (S&P) top 500 rated company CEO was 10.2 years. That has been growing slightly from the 7.2 years average tenure measured in 2009. Obviously, there is a difference between a small business and a large corporation like those in the S&P 500, but the issue is one that ought to be contemplated for all businesses. The article also notes research that has suggested that executives who stay for more than 10 years, tend to provide better results. Some argue that a decade is just the right length, as that allows the leader to make transformative changes, but not run as much risk of complacency setting in. Aside from simply bad performance, what factors would you contemplate as being key to determining when the optimal time might be for a CEO to step down.
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