With the COVID-19 pandemic behind us and some stronger economic data, there is plenty to judge a CEO's management abilities by and if they aren't performing they are out. This fresh lack of patience at the board level signals that CEOs must innovate and perform rapidly or face quick dismissal, as seen in the recent firings at major companies.
Starbucks' board acted decisively by replacing its CEO Brian Niccol after just 16 months, without waiting for activist investors to push its hand, indicating a trend of corporate boards taking charge in leadership decisions.
The average tenure for CEOs in retail and packaged goods has shortened notably this year, now averaging about 7 months less than their counterparts in other industries, underlining a shift in expectations from corporate boards.
Nestle's board made an abrupt decision to fire Mark Schneider after eight years, coinciding with a drop in share prices, clearly showing the growing pressure for immediate results from corporate leaders.
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