Get off the Island - executive dismissals - Brief Article - Illustration - Statistical Data Included

Chief Executive, The, Oct, 2001 by Sandy Kemper

ONE IN SIX INVESTORS report they've exerted pressure on a board that led to a CEO's dismissal, according to a survey of 300 global institutional investors conducted by Russell Reynolds Associates. "CEOs and boards see themselves as accountable to shareholders, and that implicitly gives shareholders power and influence," says Andrea Redmond, managing director of the company's board services practice.

Sandy Kemper, founder and CEO of online banking services firm eScout and former chairman and CEO of UMB Bank.

CEO Ousters

In the past year, has your organization exerted pressure to oust a CEO?


Yes  15%
No   85%



Note: Table made from pie chart
What was the most significant factor leading to the termination?


Poor financial Performance      59%
Poor non-financial              29%
performance
Poor Strategy and vision        29%
Conflict with other executives  11%
Stock price decline             11%



Note: Table made from bar graph
What other groups played a role in the process?


Board Members            62%
Institutional investors  57%
Shareholders             48%
The media                14%
Employees                 3%



Source: Russell Reynolds Associates, 2001 International
Survey of Institutional Investors

Note: Table made from bar graph