The Firer Becomes The Fired 😡

Table of Contents

The Firer Becomes The Fired

You might think the top of the bureaucratic hierarchy is the safest place to be, but investors are reading a new study this morning that tells us a different story! Stocks are being thrown into disarray as more CEOs get fired, receiving their marching orders instead of walking away on their terms. “By mutual agreement?” Yeah right! 

Even the head honcho is not immune. The boss’s boss is called the board of directors. The board, split into committees, handles all the boring stuff like pay and corporate governance, while the CEO gets his hands dirty with business matters. If the board gets fed up with the CEO, the board can call security to escort him or her out of the building! According to a new study from Exechange, a service that follows executive departures, 52% of leaders go because of pressure from above. Ruthless!

A few weeks ago, a heralded industry leader by the name of Bruce Linton got axed. As a pioneer in the emerging cannabis industry, his firing proves that no C-suite executive is safe. Remember Papa John from Papa John’s? He also got the boot recently, adding to a growing laundry list of ousted chiefs. More walking papers have been brandished to CEOs at Uber, BP, Renault-Nissan, Intel, Wynn Resorts, CBS, Disney, Xerox… you get the idea!

When a prominent official is shown the door, how investors react in the markets can be a telling indication of how important they were. Businesses often rely on one-of-a-kind executives who take great interest in how the stock is trading for their company. The very best will equip investors will all the information they need to make a buy or sell decision, and often, have insider ownership in the stock themselves. The market loves a manager with skin in the game, and stocks don’t take kindly to them being banished!

Who could be next in the firing line? It’s rough out there!

Share:
More Posts
From One Rock to Another 🚀

NASA’s OSIRIS-REx mission, after a seven-year journey, successfully captured and delivered asteroid samples.

Too Much Debt  💳

Rising credit card debt and delinquencies have created losses for credit card companies.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.