3894
10-02-2004, 06:19 AM
The short op/ed piece is here (http://www.newyorker.com/talk/content/?041004ta_talk_surowiecki)
Quick quote: The important thing, though, is for the board, and not Eisner, to make that decision. C.E.O.s have been able to get away with neglecting succession for the same reason that they’ve been able to get away with being grossly overpaid: boards of directors treated them as kings instead of as caretakers, and shareholders seemed not to mind. But that is changing. At Disney, it was a shareholder ruckus that got the directors’ attention and convinced them that if they didn’t do something about Eisner something would be done about them. In fact, three-quarters of big companies now have a formal process for picking a new boss. Perhaps this is the new sad truth for C.E.O.s: heavier hangs the head that must give up the crown.
Quick quote: The important thing, though, is for the board, and not Eisner, to make that decision. C.E.O.s have been able to get away with neglecting succession for the same reason that they’ve been able to get away with being grossly overpaid: boards of directors treated them as kings instead of as caretakers, and shareholders seemed not to mind. But that is changing. At Disney, it was a shareholder ruckus that got the directors’ attention and convinced them that if they didn’t do something about Eisner something would be done about them. In fact, three-quarters of big companies now have a formal process for picking a new boss. Perhaps this is the new sad truth for C.E.O.s: heavier hangs the head that must give up the crown.