Whether it’s a small business enterprise or a huge booming corporation, the CEO of the company is the person who is on top of everything and the one who controls the transactions that the company is going to take on. But what happens when the CEO fails to act his part? How will this affect the company’s standing? Let’s take a look on the 5 worst CEOS of 2012 and learn from the mistakes that landed them on the list that no businessman would ever want to be a part of.
Bryan Dunn, former CEO of Best Buy
As CEO of a well – known company, Bryan Dunn should have known that a lot’s at stake, his reputation and integrity included. With the decline of their market stock price by 30%, loss of market share to competitors who were more active in the stock market, buybacks that amounted to $6.4 billion which didn’t produce any result that would help the company and catering to same – store sales, it’s no surprise that the company went plummeting down even after he left the company. And to add insult to injury, allegations about his inappropriate relationship with a much younger subordinate did not help him in his attempts, if any, to keep the position that he has worked hard for.
Aubrey McClendon, CEO of Chesapeake Energy
When a CEO forgets the existence of the division between his personal finances and the company’s finances, it can lead to a financial disaster that might be irreparable. McClendon has borrowed around $1.1 billion over the course of three years in undisclosed loans, ran a $200 million oil – and gas hedge fund which, by all intents and purposes, is an obvious conflict of interest, using the company jet and employees for personal reasons; and sealing a corporate sponsorship deal for Oklahoma City Thunder, a basketball team that he owns all lead to a leadership failure that’s undeniable. While the company is not denying or affirming the circumstances around this CEO’s failures, numbers can’t lie.
Andrea Jung, former CEO of Avon
With a host of failed decisions from unsuccessfully preparing a successor for the position to turning down a $10.7 billion offer from Coty which would have helped the company big time. The company’s market value has fallen from $21 billion to $6 billion and the company has had to spend $300 million in legal expenses because of allegations that it violated Foreign Corrupt Practices. With the major downfall of the company under her supposedly watchful eye, Andrea Jung has definitely failed a company that was reliant on her and her decision – making powers.
Mark Pincus, CEO of ZYNGA
The CEO of the mobile gaming company that created Farmville and other hit online games has seen their stock prices plummeting down to 75% and is currently bidding farewell to an executive talent that it cannot afford to lose. While Pincus is a good bet for a CEO with an economic degree from Wharton and an MBA from Harvard Business School, his pedigree did not save him from a major bad decision that’s leading the company down. This major decision flop was in hinging the company too much on Facebook from where a big chunk of the company revenue is gotten. And with his decision to unload 16 million shares from the company after the IPO lockup period ended, it shows that he has little to no confidence in the company that he is heading. in that perspective, it would seem like Mr. CEO himself does not trust his leadership skills.
Rodrigo Rato, former CEO of the Bankia
As a former finance minister for Spain and a former managing director for the International Monetary Fund (IMF) and with an MBA from the UC – Berkeley Haas School of Business, Rato seemed like the ideal CEO for the Spanish lender Bankia. However, he now currently faces investigation for fraud, price – fixing and embezzlement which are connected to Bankia’s collapse which required bailout by the Spanish government. Bankia stated a €3 billion loss after Rato resigned, which pales their announced profit of €309 million prior to his resignation. In this case, a good employment record and a pedigree to match does not ensure a person’s sense of integrity.
Article publié pour la première fois le 30/01/2013