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

Why can’t HR position itself as a Main Business Function?

By
Human resource is the people science and the most complex as it’s is dealing with the most uncertain creatures i.e. we the humans. Still, this function of HR that is responsible for reward and recognition for other departments is still not getting the due recognition for itself! “Why the Indian HR Ecosystem lags behind the HR ecosystems of developed countries?" Let's try understanding the reason ….. The impacts of globalization in the industry is continuously evolving and consequently pushing all work functions to become in-line. Whereas the primary functions like sales and tech are the first one to get aligned, it poses a lot of challenges for secondary functions like HR to match up the same. Sadly, in accordance to a study, 51% of companies are linking business impact to HR programs. In addition, 60% believe in holding HR accountable for not just talent, but also business outcomes. This indicates that almost half of the HR industry is still in the support/a...
Post a Comment
Read more