This chapter explores the different scenarios in which a CEO may leave a company and the potential impact on the stock. It discusses the qualities that make a CEO a cultural fit, the role of the outgoing CEO in setting up the incoming CEO for success, and the challenges of having the ex-CEO still involved in decision-making. The chapter also discusses the factors to consider when choosing a new CEO and the importance of company culture and stability.
Executives are on the move. The first half of 2023 has seen the highest CEO turnover rate on record, per executive outplacement firm Challenger, Gray, & Christmas.
Deidre Woollard caught up with Anand Chokkavelu and Ricky Mulvey to talk about what it means when a leader leaves. They discuss:
- Whether CEO transitions truly change an investment thesis
- Where to source ideal replacement candidates
- And recent examples of expected departures, activist strong-arming, and questionable plays
Tickers discussed: PYPL, DOCN, SBUX, DIS, AZO, COST, FOX, NWS, KHC, CMG, PINS, ILMN, ETSY, PTON, FL, ULTA, WBA, PLNT
Host: Deidre Woollard Guest: Anand Chokkavelu, Ricky Mulvey Producer: Mary Long Engineer: Rick Engdahl
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