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The Outsiders (The Economist)

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A study of chief executive turnover in the world’s biggest 2,500 public companies by Booz & Co. shows more companies are appointing executives, but CEOs might want to dust off their resumes with caution. The study indicates that companies are looking at executives outside the organization—22% in 2011 from 14% in 2007. However, executives outside the organization are twice as likely to be terminated as insiders, and have a poorer record for making money for shareholders. Add on companies’ lower tolerance for failure than ever before, CEOs could very easily find themselves in what is politely referred to as “forced turnover events” in the next few years.