The financial media loves to trumpet a misconception that poor financial community analysts never fully have understood. That the role of the CEO is not what they believe it is.
Studies have looked at the effect of top management changes and have found they account for only about 10% of added profitability.
Often it is other circumstances that result in a company’s doing better or worse. The economy and business or general industrial conditions may have much to do with any company’s near-term fortune.
There are business cycles. Moreover, the bigger the company, the harder it is for a CEO to turn operations around on his or her own, The CEO is certainly important, but never to the extent the public, analysts, or the media, may believe. ( See the Earl J Weinreb NewsHole® comments.)
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