More North American CEOs parting ways under a cloud: Study says

Around the globe, the turnover rate for such offences went from 3.9 per cent between 2007 and 2011 to 5.3 per cent between 2012 and 2016.

An “ethical lapse” was defined as a scandal or improper conduct by the CEO or other employees, including fraud, bribery, insider trading, environmental disasters and sexual indiscretions.

Per-Ola Karlsson, with Price Waterhouse Cooper’s, said some potential reasons for the uptick include the increased use of email, text messaging and social media, the public’s declining trust in big corporate leaders, and governments implementing new zero-tolerance legislation and regulations.

Bigger companies are more likely to force out a CEO over an ethical lapse, the study said.

That may have a positive effect on public opinion over time, showing that bad behaviour is punished,said DeAnne Aguirre, a principal with Price Waterhouse Cooper U.S.

“In the meantime, CEOs need to lead by example on a personal and organizational level and strive to build and maintain a true culture of integrity,” Aguirre said.

The study also found that 12 women took the helm of major companies in 2016, representing 3.6 per cent of new CEOs. The study said businesses in the U.S. and Canada were most likely to hire a woman for the job.

The study also found that CEO turnover rates fell in every region except the U.S. and Canada.

It was not immediately clear how many Canadian companies were included in the study.

The Canadian Press

by Canadian Press

More North American CEOs parting ways under a cloud: Study says

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