It's a commonly-held belief that CEOs get fired (or forced to resign or retire under pressure) because of "current financial performance." But that's wrong, according to a new study by LeadershipIQ.com. It found that 31% of CEOs get fired for mismanaging change, 28% for ignoring customers, 27% for tolerating low performers, 23% for denying reality and 22% for too much talk and not enough action.
The four-year study by LeadershipIQ.com, the world leader in online leadership seminars, compiled these results after interviewing 1,087 board members from 286 public, private, business and healthcare organizations that fired, or otherwise forced out, their chief executive.
"We get fixated on current financial performance," explains Mark Murphy, CEO of Leadership IQ. "But if that was really the whole story, every CEO who ever missed a quarterly target or lost money would be immediately dismissed. And we know that plenty of world-class CEOs have seen their stock price dip, missed earnings forecasts, or even lost money for periods of time. So financial performance seems to be an inadequate explanation.
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