CEO Jobs: The CEO's First 100 Days

The risk of a new CEO being terminated is highest during the CEO's First 100 Days.

 Correct         Incorrect

The pressures in CEO jobs are intense during the First 100 Days.

This can create the impression that new CEO integration periods are fraught with peril and that CEO jobs have initially a higher turnover rate.  

However, research shows that CEO jobs are not particularly at risk during the first twelve months.

In fact, the shape of the danger curve reveals that, although CEO dismissals do happen in the early phase, they are rare and statistically insignificant. Between years one and three, however, the CEO turnover risk rises as bad matches get rooted out.

Different reasons exist for this low risk of CEO dismissals. One is that new CEO jobs tend to have a ‘clean up’ phase (i.e., asset liquidation) in year one. While the ‘create’ phase (i.e. asset building) does start in year one, the net effects of both phases can only be fully appreciated in year two.