- Another CEO pushed out
It's Sprint Nextel's Gary Forsee - and it's not that big a surprise. The company said it expects operating revenue to be slightly below its prior targeted range. The announcement follows news reports last week that the company already had been looking for a replacement (ouch!). Here's the AP story. Year-to-date, 1,043 CEOs have left their jobs, down from 1,112 a year earlier, according to Challenger, Gray & Christmas, the executive recruiting firm. Still, this is the third consecutive year of at least 1,000 C.E.O. departures. Why? From Portfolio:
"Many of the factors that led to record turnover in 2006 still exist today, including activist boards and shareholders, more emphasis on hitting the numbers quarter after quarter and increased scrutiny on C.E.O. behavior," said John A. Challenger, chief executive of Challenger, Gray. At the same time, he added, there are additional reasons driving the trend, including the disclosure of costly wrongheaded investments in the subprime credit markets and the pressure for performance at the legion of companies recently acquired by heavily leveraged private-equity firms. "In today's environment, it only takes one bad quarter to render a C.E.O. expendable," Challenger added. He cited as an example a Florida optics company that registered a 10 percent increase in sales for the fiscal year but still lost its C.E.O. following one bad quarter.
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| 01:45 PM Oct 8, 2007 | Email the Daily Dragon | Email this Article | Post Comments |
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