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A comment on Many Companies Aren’t Prepared to Replace Underperforming CEOs. Parent comment

Re:Many Companies Aren’t Prepared to Replace Underperforming... by thesuitonym on Friday November 04, 2022 @02:58PM (#33471940)
Seems like it would be a terrible idea. CEOs are already incredibly short sighted, neglecting long-term disasters for short-term gains. Sometimes it seems as though CEOs aren't able to see beyond the next quarterly earnings report. Having a limit would incentivize running the company into the ground to get the highest quarterly profit possible. What do they care? Someone else will be CEO next year.
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Re:Many Companies Aren’t Prepared to Replace Underperforming... by 3a2d29 on Friday November 04, 2022 @03:04PM (#33472030)
But surely if CEOs had term limits then the good ones would be jumping from one company to another, so if they think too short term then no board would hire them.

Boards would hire the CEOs that set the next one up for success.

Kinda like how term limits for the us president doesn’t usually result in that type of behavior since it would screw over their party.

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Re:Many Companies Aren’t Prepared to Replace Underperforming... by afarrell on Friday November 04, 2022 @03:32PM (#33472492)
That only works if you assume high-quality objectively-understandable information.
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Re:Many Companies Aren’t Prepared to Replace Underperforming... by danaris on Friday November 04, 2022 @03:39PM (#33472621)
Boards are the ones hiring the bad CEOs now. They're not equipped to tell the difference, even when they're not actively colluding to juice the short-term share prices so they can get out with a yachtload of money.
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Re:Many Companies Aren’t Prepared to Replace Underperforming... by yuppiepuppie on Friday November 04, 2022 @03:04PM (#33472038)
Maybe tying their severance, retirement package or stock options to the performance to the companies long term growth would help alleviate that problem.
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Re:Many Companies Aren’t Prepared to Replace Underperforming... by Apocryphon on Friday November 04, 2022 @03:04PM (#33472047)
The terms could be 5 years long, and re-electable.
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Re:Many Companies Aren’t Prepared to Replace Underperforming... by ISL on Friday November 04, 2022 @03:43PM (#33472665)
It is possible to combine term-limits with a long share-vesting period in order to (potentially) reap the best of both strategies.
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