Information in context

One metric in evaluating investments is “earnings.”  But do the earnings numbers need to be adjusted for how long the CEO has been there?

If a New CEO Appears to Be Doing A Great Job, Take a Closer Look,” Wall Street Journal, February 23, 2015 R5.  Earnings often overstated in first three years of a CEO’s tenure.  Happens less at companies with “stronger monitoring…, and board and audit-committee independence.”  Really?

What impact does this have on the culture?  Where’s the Board? Where’s the CFO?  Where’s the GC?


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Filed under Board, Business Case, Compliance, Compliance, Compliance Verification, Controls, Culture, Culture, Data quality, Duty of Care, Governance, Information, Internal controls, Investor relations, Oversight, Oversight, Risk, Value

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