What is The Most Dangerous Secret of Corporate America? Writing for DailyWealth.com, Paul Mampilly puts it bluntly:
Many CEOs aren’t good at their jobs. And some of them are morons.
Based on his 20-plus years of experience as a portfolio manager and stock analyst, Paul says that:
Great CEOs are no more common than great baseball players. Think about it: Out of the thousands of people who attempt to play professional baseball, a tiny percentage of them make it to the big leagues. And a tiny percentage of those people become All-Stars. The rest are average or below-average players.
The same thing goes for corporate America… even people managing billion-dollar companies. Fifty percent of managers are below average… and are usually dangerous to shareholders..
What are the signs of a bad CEO? Paul outlines three of them:
- CEOs who complain about their stock price
- CEOs who can’t answer a question with plain language
- CEOs who fib… also called telling “little white lies”
Paul’s article is right on point and, while written from an investment standpoint, supports the thesis for my blog: That the CEO position is unique in business and requires not just a particular set of skills and experience, but training specific to the job. I’ve often written about the importance of having a long-term outlook/plan and being open and honest with all constituents. His full article is well worth reading.