Chief Executives carry the responsibility for shareholder returns, numerous jobs, and compliance of the firm on their shoulders. Workdays are never finished after 8 hours, and weekends are generally not off. Top leaders are assumed, to rely on a stable and supportive relationship, to emotionally balance for the responsibilities and stress levels associated with the everyday […]
CEOs are traded just one level below Batman. They are rock-star-cherished for success and condemned to eternity to corporate no-man-land, upon failure. To monitor, observe and discipline this league of its own, shareholders appoint Non-Executive Directors (NEDs) to the Board of Directors (BoD). A (subtle) tension is often observed between the NEDs and the CEO. […]
Activist Shareholders raise their voice over the legitimate interest, associated with their actual investment. This is competing with the economic interest of other shareholders. Activities of Activist Shareholders are also eligible to distract the management’s focus and attention. The role of the Board of Directors (BoD) includes to balance the different spheres of interest and […]
Management is facing investors, engaging directly in strategy and operations. The perception of Activist Shareholders is ambivalent. The impact on the company can vary from delivering higher returns but also causing significant inefficiencies. For the management, it is a thin line, how to answer to calls from shareholders, in order not to disconnect from its investors, but also not […]
The common understanding of investors is over-simplified. Authorities disregard irrationalities, as well as degrees of financial sophistication. The idea, of an idealized rational investor is flatten out the spectrum of different investor types. This creates misalignment with regulations as well complexity for investor relations. Current research identifies five major types of investors, based on behavioural […]
The Board of Non-Executive Directors (BoD) can contribute significantly to the long-term and sustainable growth of a firm and offers similar benefits as good (and expensive) top consultants or strategic departments in the corporate landscape. The role and composition of the BoD determines success or failure in everyday life. On the other hand, increasing competition, […]
Following the right strategy is the key to long term going concern of a firm. As markets keep ever-changing, for mature companies, it’s vital to review the implemented strategies and also foster adaptability to new market conditions; whereas Start-Ups are observed to launch with mistaken market assessments and competitive strategies into the rough waters of competition. Both observations are […]
If the executive team gets stuck in any of the five stages of the “process of depression” during the turnaround management, it is likely to lead to the bankruptcy of the firm. Severe troubles of a firm are often paralleled by a situation of rapid change, where the dynamics of (involuntary) transformation keep accelerating and exceed the […]
It is fair to say, turnaround specialists, are often onboarded in the very last moment of distress situations. For firms, this can be dramatic, as the onboarding of a turnaround professional increases chances for going concern from (only) 12.5% to more than 90%. Reasons are linked to the degree of the ability of an organization […]
To secure going concern for a firm, a turnaround professional should on-board before the final struggle for economic survival has begun. If waiting too long, going concern is at stake and it is more promising to go to Las Vegas, to preserve investments. The suck of the downward spiral Root causes for distress situations putting going concern at stake […]
