Black MBA - Fall 2008 - (Page 20)

UP FRONT STUDY FINDS REASONS FOR FREQUENT CEO TURNOVER Light has been shed on why more than 25 percent of new CEOs last less than three years in their positions, thanks to a study by Dr. Yan Zhang of Rice University’s Jones Graduate School of Management. The study, released in June and titled “Information Asymmetry and the Dismissal of Newly Appointed CEOs: An Empirical Investigation,” found that of the 204 CEOs that Zhang tracked from 1993 to 1998, 55 of them left their positions within three years. The study largely blames a lack of sufficient information about CEO candidates’ capabilities for the frequent turnover of CEOs. A board of directors – the responsible party for making the hire – that is disappointed in an appointed CEO’s performance often cites that it was not fully aware of the CEO’s strengths and weaknesses. The study shows that new CEOs who are external hires have the hardest time, as the chance for misinformation about them is very likely since the board does not know them well. Another factor that affects fast CEO turnover is the reasons for the previous CEO’s departure from the company; if the past CEO was dismissed unexpectedly, the study found, the board often scrambles for a replacement, increasing the likelihood that its hire will be a bad one. The make-up of the board also influences whether a CEO hire is successful – directors who are independent of the company, rather than in-house directors, typically make more sensible, less biased decisions about a new CEO. –www.rice.edu VOLUNTEERS NATIONWIDE GO ON LOW-CAR DIET Zipcar, a rental car company based on hourly rather than all-day rentals, challenged individuals in 12 big North American cities – namely, Atlanta, Boston, Chicago, New York, Philadelphia, Pittsburgh, Portland, San Francisco, Seattle, Toronto, Vancouver and Washington, D.C. – to stop driving their cars for 30 days, beginning July 21, to save on money, gas and car emissions. Besides urging the more than 150 participants to walk and ride bicycles to get places, Zipcar issued them each a complementary transit pass and Zipcar membership. The challenge, called the “North American Low-Car Diet,” was the fi rst of its kind and the participants reportedly found it eye-opening. Findings included that the average participant walked eight miles per week and bicycled 25, and saved around $71 per week. The challenge inspired some participants to reconsider owning a car. Personal accounts are shared on Zipcar’s “Low-Car Diet” Web site, www.zipcar.com/lowcardiet. The challenge kicked off in downtown Atlanta’s Woodruff Park and was attended by special guests from MARTA and the Clean Air Campaign. –www.zipcar.com/lowcardiet WEB SITE URGES YOUTH TO VOTE BY TEXTING EACH OTHER The Web site www.txtoutthevote.org, in collaboration with the League of Young Voters, has created an easy way for individuals to encourage each other to vote on Election Day – by sending a reminder text message. Though geared toward young people who are typically more text message-savvy, the site is open to all ages and allows individuals to sign up an unlimited number of friends, coworkers and family members to receive up to two generic or personalized “Don’t forget to vote!” text messages Nov. 4. The service is free, though standard text message rates apply, and available until Election Day. –www.txtoutthevote.org 20 BlackMBA • Fall 2008 • www.nbmbaa.org http://www.zipcar.com/lowcardiet http://www.zipcar.com/lowcardiet http://www.zipcar.com/lowcardiet http://www.txtoutthevote.org http://www.txtoutthevote.org http://www.rice.edu http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Fall 2008

Black MBA - Fall 2008 Contents Online From the Chairman From the President & CEO Up Front Who is Middle Class? Life and Times of the Middle Class Modern Times CEO to CEO: Why Didn’t I Think of That? Pass it Forward 30 Years of Conference NBMBAA Board of Directors Honorary Co-Chairs Conference History Speaker Showcase Industry Theatre NBMBAA Case Competition® Scholarship Winners NBMBAA Chapter Presidents Conference 2009: New Orleans The New Face of Recruitment Part-Time is the Right Time Across the Pond On Campus Board Bound MBAs for the USA Market Reality: Good Tapping Company Resources On the Move Employer Profiles Leading Bias-Free Mentoring Matters Faith in Corporate Circles Mideast Region Steps Up its Game Collegiate Chapters All in the Family How to… International Markets Are You Happy? Survive and Thrive Striking a Balance Advertiser Index In Focus

Black MBA - Fall 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.