High Profile CEOs Lose Investor Confidence

from the that's-the-end dept

A story in the Washington Post about how a high profile CEO at a tech company can be very damaging. Once Wall Street decides that they no longer trust a CEO it can start a death spiral that kills the company. This sounds obvious – and you would think that a good company shouldn’t care what Wall Street thinks if they’re making money. However, with high tech firms that are still in the “building” phase, they’re relying on investments to get them to a certain point, and if Wall Street suddenly turns against the CEO, then they can’t get the investment needed to get to that point. Of course, the obvious response to this is that most companies shouldn’t be public if they’re not at a point where they can’t build a profitable business from what they have, but that’s nitpicking, I guess.

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