Dominic Barton, global managing director of McKinsey & Company and a Canadian who for 25 years has counseled business, public sector, and nonprofit leaders across the globe (he’s lived in Toronto, Sydney, Seoul, Shanghai, and now London), offers a thoughtful essay on Capitalism for the Long Term.
Sure, numbers matter. But not hitting your numbers is only one reason Boards fire their CEOs. Trust or confidence in the CEO is crucial. Employee relations (both the proper and the improper kind) is a key concern to Boards. And there is the matter of responsiveness to customers. All are considered by Boards when determining the fate of the incumbent. For more, click here for an interesting article from Wharton.