Boards Benefit From Dismissing CEOs Early: Study
The study, which analyzed 430 firms that let their CEOs go between 1996 and 2003, disclosed that markets react negatively to early dismissals. It’s still worth it, however, because late CEO dismissals lead to larger and more permanent damages in shareholder value, according to the study.
“CEO dismissal decisions that come too late, i.e. after shareholders’ equity in the...
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