IR Magazine (December 7)
“New CEOs who present their strategy within the first 100 days of their appointment can see stock prices rise by an average of 5.3 percent on presentation day (around $2.8 bn in market value). The average stock price gain for presentations by new CEOs appointed from outside the organization is 9.3 percent (just under $5 bn), and for new CEOs from outside the company’s home industry it’s 12.4 percent (around $6.6 bn).” Despite these impressive results, “only 40 percent of new CEOs present on strategy in their first 200 days.”
Tags: Appointment, CEOs, Industry, Presentation, Stock prices, Strategy
Reuters (November 16)
“It will be a new day at the U.S. Securities and Exchange Commission after President-elect Donald Trump installs his choice to run the agency.” With the resignation of SEC Chairman Mary Jo White, who was a proponent of regulation, Trump’s team will have a relatively free hand. “Some rules already are marked for death or dialback.” Among them are the conflict mineral disclosure requirements and “a proposal that would require companies to disclose pay ratios between their CEOs and employees.”
Tags: CEOs, Conflict minerals, Dialback, Employees, Mary Jo White, Pay ratios, Regulation, Resignation, SEC, Trump, U.S.
Financial Times (May 11)
“The global trend has turned against title-hogging corporate leaders.” In 2002, the majority of incoming CEOs in Europe and the U.S. also held the Chairmanship. Last year, only 10% did. “Sometimes a species reaches the end of its natural existence…. The last survivors of the doomed herd become objects of curiosity and pity. This is happening to chief executives who are also chairmen—but with none of the pity.”
Boston Globe (October 2)
Warren Buffett complained his tax rate was too low. He believes the wealthiest Americans have an obligation to pay more. In his honor, President Obama has proposed a minimum “Buffett tax’’ on the very rich. The Globe salutes Warren Buffet, contrasting him with other CEOs. Buffett is “a walking indictment of the puffed-up CEO who, in bad times, displaces blame in a torrent of MBA-speak – and takes home big bonuses no matter what.”
