We know that CEOs are being fired with ever greater rapidity. The popular assumption is that this is because they are not delivering
sufficient results to an increasingly impatient computerized/algorithmically-driven market for securities trading. Witness the $60+ billion decline in Apple's value just yesterday when it 'only' achieved 33% growth in the previous quarter.
But the reality is that most CEOs and their leadership teams are relatively immune to such swings thanks to carefully-negotiated employment contracts which essentially secure a lifetime of well-being no matter what their performance may be.
No, the predominant reason for hastier-than-aniticpated termination, as the following article explains, has to do with what some analysts still refer to as 'soft issues.' Like leadership style, ineffective change management (post-merger integration problems are a minefield into which all too many carelessly wander), insufficiently harsh cost-cutting and matters of corporate or personal reputation.
The importance of intangibles has grown exponentially in the post-industrial service economy, especially the rising impact of human and intellectual capital in producing greater value over lesser time horizons thanks to strategies based on data rather than tangible assets. The only surprise, given these well-publicized developments is that these issues are still considered 'soft.' JL
Mark Murphy reports in Forbes
Most CEOs get fired for “soft issues.” Thirty-one percent of CEOs got
fired for poor change management, 28% for ignoring customers, 27% for
tolerating low performers, 23% for denying reality and 22% for too much
talk and not enough action.