Skip to main content

When celeb CEO resigns, should the team, board members and investors worry?

By
CXO level hiring.
Undoubtedly, the drastic changes at the top management do affect overall organizational operations. And many times it makes a detrimental impact on productivity and short-term profitability shakes the confidence of customers, investors .also this can lead to loss of key talent in organization These effects can be multifold if he is celeb CEO.

Like we witnessed 30 go air pilot’s resigned after CEO exit, Reliance Life has taken some hits last financial year when Anup Rau resigned.

Sometimes Celeb CEO exit may even effect various cos like ripples were there in some startups when Nikesh Arora resigned.

High-profile departures remained a very frequent activity in the start-up ecosystem in India this year. in case of start-up brand equity of the company is mostly dependent on Celeb CEO.

When the CEO resigns for reasons unrelated to the business, especially unseemly ones, we can expect some serious financial hurt.

In the current volatile economic scenario and greater competition among coorporates has made board members/promoters more aggressive in their approach to sustain growth. This is leading to a higher expectation of board from top management to deliver faster results. This is a herculean task considering all practical feasibility A disappointing report jeopardizes a leader’s position within a company, a phenomenon evident thus far this season, as several chief executive officers have stepped down this year 

 With CEO turnover being a prominent way in which a company can prove to stockholders that it plans major change, it is important to understand how such resignations affect stock prices at these companies.

So does it mean when celeb CEO resigns, should the team, board members and investors worry? 
No, not in all cases. Sometimes a change is necessary, pushing a stock higher in anticipation of better times around the corner. Like we witnessed recently with hosing portal company and aviation company.

Planning the succession and knowing what everyone's new roles and responsibilities are is key.  Most companies have a succession plan, so this scenario isn't terribly common.
Read Further: http://content.timesjobs.com/worry-celeb-ceo-resigns/?fromsite=toi

Pankaj Minglani
Principal Consultant
Impeccable HR Consulting P Ltd.
|  www.impeccablehr.com |
Labels:

Comments

Post a Comment

Popular posts from this blog

HR Agility: Managing the Change!

By
Progressive organizations that are seeking a profound competitive edge in the digital world have been increasingly focusing on the need for HR agility. However, there is lurking concern that HR agility is endangered to become a trending buzzword in corporate conversations. HR agility is basically the ability of the HR function to react instantly and adequately to the evolving employee expectation, business conditions and workplace disturbances. Therefore, HRs are expected to elevate their functions to a level where they can keep pace with the evolving demand. Today’s business processes have a more stable environment. The objective is to drive efficiency, consistency and risk reduction through tight procedures and controls. It is with the emergence of global competition, changing customer demand, political turmoil, supplier upheavals and economic troughs that the stability is getting replaced with permanent volatility. Gone are the days when the pre-structured polici
1 comment
Read more

The rising of Functional Managers

By
In recent years, the market globalization is fueling greater competition among corporates. Now large institutional shareholders are becoming a new source of external governance.  In response to these massive shifts in the environment, the firms are spinning off their peripheral businesses, focusing on core areas and outsourcing selected activities.  One of the recent transformations in the corporate world is the skyrocketing number of executive team. According to a survey of some 300 Fortune 500 companies, the number of functional managers reporting directly to the CEO has doubled, from an average of 5 direct reports in 1986 to an average of 10 today.  A power shift is occurring in modern businesses as the functional managers who report directly to the CEO – are taking greater control in business management.  CEOs are eliminating layers in management ranks, broadening their spans of control, and changing pay structures by increasing incentives.  This has give
Post a Comment
Read more

6 Ways to make your work life happening

By
Being working doesn't mean it has to be boring, it's about finding the gaps and filling them with wonderful things. Here's is how you can do it. Stop being calculative When you are working with an organization and staying there for major part of your day, you are supposed to pour your heart out to every task you do. We have to stay there for 8-9 hours, there cannot be an escape, then why not utilize it fully for learning, exploring and accomplishing our best. Time killers   Every organization contains some specific lot of people, who are more focused towards not-so-important issues rather than their work profile. They mostly spend their day gossiping, cribbing, complaining or having juicy discussions about the personal lives of other colleagues. Naturally, they have no personal development goals and pretend to be the most ideal human beings present, our suggestion is to ignore such people politely. If given choice spends your valuable time talking to great minds
Post a Comment
Read more