In the last few months there has been a glut of business executive resignations sweeping the market. This multitude of corporate resignations has showered the news headlines indicating possibly hazardous business conditions. It appears the markets have tested the wherewithal or oversight ability of some of the best senior executives and managers to the point of no confidence, lack of fortitude and resignation.
If there is no index measuring executive resignations maybe there should be. An executive resignation index could serve as an economic and business performance indicator, especially if the reasons for the executive resignations are also documented. For example, of the companies below several resignations are directly linked to performance failure whether that be related to scandal, insider trading or operational shortcomings.
If there is no index measuring executive resignations maybe there should be. An executive resignation index could serve as an economic and business performance indicator, especially if the reasons for the executive resignations are also documented. For example, of the companies below several resignations are directly linked to performance failure whether that be related to scandal, insider trading or operational shortcomings.
An executive resignation index cross-referenced to profit margins, earnings per share etc. might actually have a reasonably correlated beta coefficient worth consideration in investments decisions. This would make such an index a useful investment decision making tool. Granted the employee turnover-ratio does measure employee turnover and is an indicator of possible internal problems, but it is not quite the same as an executive resignation index which may serve to measure not just corporate volcanic activity, but total eruptions.
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