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Senior Management of the Railroad-Do they know the business?
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You really can't generalize as different CEOs have different styles, specialities, and skill sets. If you look at many companies over a long time period you find changes at the top corresepond to what direction the board and stockholders want to take. For example, if the 'plan' is to do a merger, a CEO with strong financial skills and ties to Wall Street is often brought in. He may come from another industry and know little about what the company actually does. He's just there to do a merger or buyout. If the plan is to restructure or radically change direction, you may see a 'slash and burn' type CEO. If the plan is to innovate and nuture growth, you get a different style and background than if the objective is cost control. <br /> <br />Most companies go through phases as economic and competitive conditions change. The frequent changes seen at the top don't indicate bad management. That's why the half-life for CEOs is about 18-24 months and they get those generous severance packages - they know they'll end up getting fired the day they're hired. <br /> <br />CEO's are sometimes criticized for not communicating strategic plans well, both to employees and the business media. But for publically traded companies insider trading laws mean very few managers inside the company know about a pending merger, IPO, etc. That's why you'll hear about merger talks held in secret, off-site, on weekends. Executive management is a 24/7/365 deal, your life IS the company.
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