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Corporate Leadership Turnover
In the midst of the Enron trial as well as the fallout from several other corporate scandals such as Adelphia Communications Corp. “ADELQ.PK”, WorldCom and Tyco International Ltd. “TYC”, I have wondered if we have raised our standards for corporate leadership. 

I am not sure that the standards for leaders have ever changed, but something has changed to allow such a rash of corporate crime to occur, often perpetuated by business executives driven by selfish greed.

Take note of an excellent article in the Washington Post that examines the issue of executive turnover.

“In a year when chief executive departures nationally have reached record levels, a number of prominent local executives have parted ways with their companies as boards of directors have asked increasingly tough questions.”

I appreciated the insight of my former corporate finance professor

"A CEO's job is much less stable than it was 10 or 20 years ago," said Steven N. Kaplan, a finance professor who studies corporate governance at the University of Chicago's Graduate School of Business. "One explanation is that boards are doing their jobs or they're doing their jobs more than they used to."

Better board oversight, policy changes and laws such as Sarbanes Oxley and recent high profile fraud convictions may be chasing out executives that do not meet standards of ethics, corporate responsibility and legal compliance.

"Burson-Marsteller, a New York-based public relations firm. 'It's just a very difficult time for CEOs.' Their departures reached record levels last year at the Fortune 1000 companies, she said. A survey by her group found that turnover increased 126 percent in the chief executive ranks from 2000, when 57 chief executives left, to 129 in 2005."

Read more about how the loss of moral values in the executive office and other places could be changing our culture.

4 Comments/Trackbacks

» Executive Leadership Has Risks from LeaderNotes
In a study released today, consulting firm Booz Allen & Hamilton reports that job security for top executives is shaky at best.  The study showed that more than 15 percent of the world's 2,500 biggest companies lost their chief executives... [Read More]

This is a hit to the freedom of speech; I hope NBC is happy that they have allowed the bully pulpit to tear away at one of our basic freedoms.
When we decide that one group is allowed to use terms and phrases that another is not, and we as a people let this happen, it is a sad day Shame on Imus, Sharpton, Jackson, the Media, and All of us.

You're right, corporate leadership is a field where standards are changing fast. What do you think about the Ron Brown Award for Corporate Leadership ? The last edition's winners were Bayer Corporation, Johnson & Johnson and S. C. Johnson & Son, Inc., ann of which share the same standards in corporate leadership excellence and ethics.

The cheating Culture - they have a point there!

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