HOW TO KNOW WHEN IT'S TIME FOR YOUR CEO TO GO.

A study conducted by researchers from Boston University, the University of Cologne, the University of St. Gallen, and the Karlsruhe Institute of Technology found that the value of a company typically peaks and plateaus around the CEO's 10th year in the job. After 14 years, the firm's value starts to decline. The researchers also discovered that investors consider the sudden death of a CEO to be bad news for the company if the CEO has held the job for 13 years or less, but if the CEO has been there longer than 13 years, investors bid the stock up on the news of the CEO's demise. The article also presents a leadership framework with five stages that CEOs typically go through, from enthusiasm to excellence, and warns that CEOs who stay in the job for too long risk complacency and lowered performance. [Extracted from the article]