GE Whiz: If Only Flannery’s Ouster Was Unique

No one knows more about CEO succession — the good, the bad, and the very ugly — than Yale’s Jeffrey Sonnenfeld. He has some thoughtful comments on the second CEO within a year at GE. He insists it is not unheard of and makes the key point that there was a major turnover on the…

JD CEO’s arrest steps on governance landmine – Breakingviews

Emphasis added to this story about a “governance landmine” that illustrates the problem with governance structure that is overweighted in favor of the CEO. JD.com shareholders just got an abrupt reminder about their investment. Richard Liu, the founder and chief executive of the $45 billion Chinese e-commerce company, was arrested in the United States for alleged…

Narcissistic CEOs Can Mean Big Legal Bills | Stanford Graduate School of Business

At first glance, it might seem worth it for a company’s shareholders to tolerate a narcissistic CEO’s abusive personality, given the outsized success that Jobs and others like him have achieved. But narcissistic CEOs’ rampant hubris also has a serious downside, [Charles] O’Reilly notes. Studies indicate that they’re more likely to engage in questionable tax-avoidance…

What do companies really have to reveal when a CEO is ousted? – The Washington Post

Jena McGregor writes in the Washington Post about the delicate obfuscation in CEO departure announcements:<P Barnes & Noble’s announcement on Tuesday that its CEO, Demos Parneros, was being terminated, gave investors some important information: He would not get a severance. His firing was not related to “any potential fraud.” He had violated a company policy and…

FCA fines Barclays boss £640k over whistleblower failings – Citywire

The Financial Conduct Authority (FCA) and Prudential Relegation Authority (PRA) have fined the chief executive of Barclays £642,430 over his handling of a whistle blower. In a joint statement the two regulators announced the Barclays chief James Staley will be fined for his failure to ‘act with due skill, care and diligence in the way he…

The Lonely CEO | Directors and Boards

The significant conclusion we would draw is somewhat different: CEOs do not allow or enable boards to play a significant substantive role beyond compliance and window dressing, and boards make no effort to change that. Whether it’s racial tensions in a coffee shop or testimony before Congress about privacy, CEOs face a lot of pressure…