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?