Ethics Lapses and CEO Turnover

business_ethics_highlights_2 Does ethical behaviour lead to CEOs getting sacked? The study below suggests a trend in that direction. But some caution is warranted here, both with regard to the headline and the substance of the study. Ethical lapses aren’t always the CEO’s fault, even though, yes, “the buck stops there.” Of course, sometimes it’s very much their fault, either because they did it, or because they let it happen.

Also, another question not answered by the info presented here: the fact that more CEOs are being fired can mean that either a) more transgressions are occurring, or b) boards are taking this stuff more seriously.


LINK: Unethical CEOs Shown the Door More Often (by Eve Tahmincioglu for Directors & Boards)

The number of CEOs who were ousted for ethical lapses has been increasing at public companies around the globe, but such dismissals aren’t as prevalent at U.S. companies.

The 2016 CEO Success study by Strategy&, PwC’s strategy consulting business, analyzed CEO successions at the world’s largest 2,500 public companies over 10 years, and found that forced turnovers due to ethical lapses jumped 36% during the four-year period ending 2016, compared to the four-year period from 2007 to 2011….

What do you think?

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