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Motley Fool Hidden Gems Investing

CEO Shake-Ups

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 23 September 2023

⏱️ 27 minutes

🧾️ Download transcript

Summary

Executives are on the move. The first half of 2023 has seen the highest CEO turnover rate on record, per executive outplacement firm Challenger, Gray, & Christmas.  Deidre Woollard caught up with Anand Chokkavelu and Ricky Mulvey to talk about what it means when a leader leaves. They discuss: Whether CEO transitions truly change an investment thesis Where to source ideal replacement candidates And recent examples of expected departures, activist strong-arming, and questionable plays Tickers discussed: PYPL, DOCN, SBUX, DIS, AZO, COST, FOX, NWS, KHC, CMG, PINS, ILMN, ETSY, PTON, FL, ULTA, WBA, PLNT Host: Deidre Woollard Guest: Anand Chokkavelu, Ricky Mulvey Producer: Mary Long Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

I think it's like with football coaches, I think this is a case where just about anything

0:05.6

could work depending on the situation, the company culture and the support system in place,

0:11.2

you know, can a former player coach, sure can, can an offensive coordinator make the transition

0:17.5

to head coach?

0:18.5

Yup.

0:19.5

What about a defensive coordinator?

0:21.6

Yes, can Dion Sanders rise untraditionally and be successful pretty much right out of

0:27.4

the gate?

0:28.4

What can happen, too?

0:33.2

I'm Deja Willard and that's Anand Shakavalu.

0:36.0

I caught up with him and Ricky Mulvey to talk about the different scenarios that cause

0:39.4

a leader to leave a company and how investors should think about what happens next.

0:44.1

We discussed the lasting effects of a long goodbye, gold standards for passing the torch,

0:49.4

and recent examples of expected departures, activist strong arming, and a few moves that

0:53.8

have left us wondering what the heck just happened.

1:00.2

Let's start on an interview.

1:01.2

First of all, would a CEO of a stock you own and love leaves, well, what do you think

1:06.7

first?

1:07.7

The first reaction, for me, is similar to when a couple that you know well breaks up.

1:14.0

You know, spill the tea, is there a juicy backstory?

1:17.6

He did what?

1:20.5

Then I'd probably break the CEO leaving, get into two buckets.

...

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