NEW YORK, Aug. 14 (Xinhua) -- The abrupt departure of Laxman Narasimhan as chief executive of Starbucks ushered him into a group of high-profile executives who have resigned, or been ousted, after less than two years in the position, a sign that more big-shot corporations have been on bumpy roads, reported The Wall Street Journal on Wednesday.
Narasimhan assumed the CEO role at the coffee giant in March 2023 and was announced to step down on Tuesday, after roughly 16 months. The average tenure of a departing CEO in the S&P 500 is about 8 years, according to data from the Conference Board and data-analytics firm Esgauge.
"When CEOs have short tenures, it is typically because of pressure from a company founder or activist investors, or a realization that a new strategy is failing to take off, corporate advisers say," said the report. "In some instances, like at Disney, an old boss is itching to return."
"These are often cases of failed executions of visions to turn around the company in a difficult financial situation," said Matteo Tonello, managing director of ESG research at the Conference Board. "The board realizes it's a miss, and wants to change course before further damage is caused."
Except for Narasimhan, notable short-time CEOs in the United States include Ron Johnson of J.C. Penney, serving about 17 months; John Flannery of General Electric, 14 months; Bob Chapek of Disney, from February 2020 to November 2022; Ed Whitacre of General Motors, 10 months; Edward Liddy of American International Group, 12 months; and Stephanie Linnartz of Under Armour, 14 months. ■