The fact that low profitability, or a bad bottom line, raises the probability that the chief executive of a company will be fired by the board may come as little surprise.
But, as an analysis of more than 100 Spanish companies shows, having more proprietary directors and/or directors belonging to more than one board raises the likelihood that the CEO will be sacked.
Higher the Stakes, Harder the Fall
IESE Prof. Guido Stein and Manuel Gallego studied such major Spanish companies as Endesa, Iberdrola and Inditex, from 2006 to 2011.
See full Article: http://www.ieseinsight.com/doc.aspx?id=1439&ar=3
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