When Should CEOs Be Fired?

There's a difference between good chief executives who have made mistakes and ones who are unable to lead

The Queen of Hearts in Alice in Wonderland had a simple solution for anyone who displeased her: "Off with his head," she would shout. The growing trend to fire CEOs quickly raises the question of when they should be let go. Should a chief executive be removed at the first hint of a difficulty, or should boards stand behind him or her, even if the CEO is responsible for a bad decision or an egregious error in judgment?

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