By Chris Groening *
(exechange) — April 1, 2021 — The Push-out Score focuses on whether a CEO is forced out or voluntarily leaves. These are, of course, important issues for investors. However, investors may also wish to examine whether the CEO accomplished the goals with which the board tasked them.
Was the CEO hired as a specialist? For instance, Rose Marcario recently resigned as CEO of Patagonia. She was very successful in addressing supply chain issues and advancing Patagonia’s environmental commitment.
However, her resignation statement touched on the need for new people to envision and enact the next step for the company. This is not to say that Marcario could not have succeeded in these endeavors.
We often see this type of leadership in sports. Many managers do not envision lifetime employment or employment beyond a few years.
Often, football general managers hire the manager for a specific goal; for instance, to save the team from relegation, to advance to the Championship league, or to win league trophies.
Once the current manager achieves the club’s goal a new manager may be hired to advance the team to the next stage.
* The writer is an Associate Professor of Marketing at Kent State University. He researches the financial impacts of corporate social responsibility. cgroenin@kent.edu.
Editor’s note: This is a guest post.