From Today's Eureka Report
Very Short Sighted....
CEOs often hang on too long and turn the company into a private fiefdom.
Directors these days are often simply plucked from the chairman’s network of friends and former CEOs, and then when they get there are swamped in compliance. Any idea that they will get to determine the strategic direction of the business gets put aside while they tick boxes.
And in any case they usually manage the business for the short term, rather than the long term. That’s not always their fault: fund managers are focused on quarterly performance and put immense pressure on companies to do the same – to pay big dividends and maximise short-term terms, often at the expense of the future.