Interim CEOs On the Rise and Underestimated; Seventy Percent of Interim CEO-Led Companies Deliver Stock Market Returns Well Above Peer Companies.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- A new class of CEOs - the Interim CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. - has been identified by global public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most firm Weber Shandwick This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. . The number of Interim CEOs has grown markedly in recent years. Last year, there were nine Interim CEOs in place at major companies, a more than four-fold increase from 2003. Notably, more than two-thirds (69 percent) of the 13 identified publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. led by Interim CEOs since 2003 dramatically outperformed an index of peer companies by a median of 10.8 percent. Despite the perception that these CEOs are primarily transient caretakers, Weber Shandwick's analysis reveals that these executives' performances may be vastly underestimated. "The trend in Interim CEO appointments is expected to continue," said Micho Spring, chairperson of Weber Shandwick's corporate practice. In 2006, several Interim CEOs have already taken the helm at high profile companies such as Gateway (Rick Snyder), Kelly Services Kelly Services, Inc. is a Fortune 500 company headquartered in Troy, Michigan, offering staffing solutions that include temporary staffing services, outsourcing, vendor on-site and full-time placement. Kelly operates in 30 countries and territories. (Carl Camden, now CEO), L-3 Communications (Michael Strianese), Radio Shack (Claire Babrowski), Wendy's International (Kerrii Anderson) and Zale Corporation (Betsy Burton). Other interesting findings on this newly emerging leadership group are: --On average, an Interim CEO's tenure was 159 days or 5.3 months, ranging from 59 to 300 days. --During the service of the nine outperforming Interim CEOs, their company's stock gained a median of 18 percent. --In addition to the nine (69 percent) outperforming Interim CEOs, the stock of three (23 percent) Interim CEO-led companies underperformed an index of peer companies. The stock of the remaining Interim CEO-led company (8 percent) matched its peer index. (Returns were calculated from the last trading day Last Trading Day The final day that a futures or options contract may trade or be closed out before delivery of the underlying asset must occur. Notes: If the buying and selling parties do not arrange an alternate agreement, the physical commodity must be delivered from before the Interim CEO started through the last trading day of his/her service as Interim CEO.) --Among all Interim CEO-led companies examined over the past three years, the median company outperformed an index of peer companies by a significant 8.1 percent. CEOs continue to depart at a rapid pace as corporate boards take more active roles in overseeing executive performance. As CEO tenures increasingly shorten and former CEOs depart unexpectedly, boards frequently find that successor CEOs are not identified or properly groomed for the chief executive position. Interim CEOs represent a smart solution until boards can find qualified successors or gain confidence in the Interim CEO's leadership ability. "Interim CEOs generally may deliver superior stock market returns because the market is rewarding the board's decision to change leadership," said Weber Shandwick's Chief Reputation Strategist and CEO expert Dr. Leslie Gaines-Ross. "Shareholders may experience relief that the company's strategic direction is finally in new hands and that the short-term CEO will make the necessary tough decisions." About Weber Shandwick Weber Shandwick is one of the world's leading global public relations firms with offices in major media, business and government capitals around the world. The firm specializes in strategic marketing communications, media relations programs, public affairs and issues management and provides corporate communications counseling. Weber Shandwick also provides specialized integrated services including Web relations, advocacy advertising, market research and visual communications. Find out more at www.webershandwick.com. Weber Shandwick is a unit of The Interpublic Group of Companies This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (NYSE NYSE See: New York Stock Exchange : IPG IPG Implantable pulse generator, see there ), which is among the world's largest advertising and marketing services organizations. Dr. Leslie Gaines-Ross' reputation blog can be found at http://www.reputationxchange.blogspot.com/ |
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