SECOND TIME IS A CHARM? REHIRING THE EX-CEO

Amod Choudhary

Global Journal of Business Research, 2015, vol. 9, issue 1, 97-104

Abstract: There have been many Chief Executive Officers (CEOs) of public companies who have come back to lead the firm they once gloriously lead. Since 2005, among S&P 100 companies in the U.S., there have been six CEOs who have returned as CEOs at the same company, with Steve Jobs of Apple being an exemplary 2nd term CEO. This paper analyzes whether these two term CEOs have been successful in their second tour of duty based on changes in share price of their companies during their second tour. The data shows that overall; there is no clear pattern in terms of better performance for second term CEOs. Although the analysis of share prices shows that 2nd term CEOs outperform the CEOs they replace by a wide margin, that number is very highly skewed by astronomical success of Steve Jobs at Apple. Additionally, the analysis of this paper shows that with the exception of two returning CEOs all others were either founders or member of the Board of Directors. Finally, this paper briefly discusses measuring performance of CEOs using Environmental, Sustainability and Corporate Governance matrices

Keywords: Stock Performance; S&P 500; 2nd term CEOs; ESG (search for similar items in EconPapers)
JEL-codes: G1 M1 (search for similar items in EconPapers)
Date: 2015
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