Well, at least Dutch top managers are.
When do top managers generally decide that it is time to move on and �seek other challenges�? Well, one prominent reason is of course that they are about to get the boot (because their firm�s performance is in dire straits). Yet, that appears to not be the only case. Academic research on American executives � among others by Professor Wagner from Michigan State University � has shown that top managers are not only leaving when the performance of their companies is rock bottom (undoubtedly with a good poke by their board if not a kick in the backside) but also when firm performance is relatively high. Wagner speculated that this happens because then they�re hot stuff on the job market and able to find themselves a nice new green pasture.
Now, although this will hardly be anyone (else)�s idea of �fun�, it so happened I had a database available on a couple of hundred Dutch top managers and was curious whether the same might be true for these guys (yes, all of them guys�). And you know what, after a good chunk of statistical analysis it appeared that Dutch top managers also leave when their firm�s performance is at a high. Yet, they�re not walking at all when it�s low�?! Apparently, Dutch top managers don�t get the sack even if their firms are underperforming.
When do top managers generally decide that it is time to move on and �seek other challenges�? Well, one prominent reason is of course that they are about to get the boot (because their firm�s performance is in dire straits). Yet, that appears to not be the only case. Academic research on American executives � among others by Professor Wagner from Michigan State University � has shown that top managers are not only leaving when the performance of their companies is rock bottom (undoubtedly with a good poke by their board if not a kick in the backside) but also when firm performance is relatively high. Wagner speculated that this happens because then they�re hot stuff on the job market and able to find themselves a nice new green pasture.
Now, although this will hardly be anyone (else)�s idea of �fun�, it so happened I had a database available on a couple of hundred Dutch top managers and was curious whether the same might be true for these guys (yes, all of them guys�). And you know what, after a good chunk of statistical analysis it appeared that Dutch top managers also leave when their firm�s performance is at a high. Yet, they�re not walking at all when it�s low�?! Apparently, Dutch top managers don�t get the sack even if their firms are underperforming.
Interestingly though, these top managers not only left when their firm�s performance was relatively high, but when it was also just starting to (rapidly) decrease. I guess it is all about picking your moment; what better time to get out than when you�re just �over the hill�, and your house of cards is about to come tumbling down!
