CEO Transitions and the Risk to Enterprise Value
Changes at the top pose an extraordinary risk for many public companies and their enterprise value. With CEO turnover levels at the highest rate in six years, managing this type of risk is now clearly considered normal course of business for most directors and boards.
The new study, “Communicating Critical Events: CEO Transitions and the Risk to Enterprise Value”, conducted by the Strategic Communications practice of FTI Consulting, explores the risk inherent in CEO transitions, and challenges the traditional wisdom surrounding stock volatility and the threat to enterprise value around such critical business events.
The Study
FTI Strategic Communications conducted the “Communicating Critical Events: CEO Transitions and the Risk to Enterprise Value” study to better understand the risks associated with CEO transitions.
Key Findings
The study analyzes the actual value-at-risk (VAR) to a company during a CEO transition, taking into consideration multiple variables and scenarios defining the transition. It also explores the influence of CEO reputation on investment decisions and how investors assess a new CEO.
About FTI
The Strategic Communications practice works closely with management teams and boards of directors, advising them on communications strategies that advance overall business goals and increase the value of their enterprise.
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