Home Add to Favorite Contact Submit  
             27 January, 2021

Category:  Articles » Business » Change Management


3 Billion Euros - The Value of a New CEO

         Views: 1598
2008-10-04 04:43:45     
Article by Hans Bool

It happened today. Unilever announced that they have found a new CEO, in anticipation to the foreseen retirement of the current CEO at the end of this year.

In a financial market that was in decline, Unilever was one of the few stocks that climbed 1,23 euros more than 6%. When we multiply this with the number of outstanding shares of the company, we get the value of (about) 3 billion euros.

3 billion of euros is the value of this message. A simple anatomy could look like this.

- The value of a new CEO (60%). People think that a new manager on the steering wheel of a company is able to do what a predecessor could not achieve.
- A possible change of direction (40%). The new CEO comes from another company. In this case the expected change is more profound than if the CEO would come from within the company. It will constitute a change of directions, culture perhaps. Added to this could be the fact that the new CEO comes from the competition, Nestle.

The 40 - 60 percent figures are random.

Those who complain about the excessive revenues of CEO's (the 60 million euros of the CEO of Porsche is often taken as a benchmark) should think twice. Apparently the market values a CEO like this. 3 billion euros is not something to ignore.

Of course it is all speculation, the value is based on expectations (like that of a possible split-up of the company) and with any announced changes, these still needs to be delivered yet.
However a new CEO is valued to what he can do. And one of these things is not even attributable to his arrival but has been valued at forehand: setting new expectations. How he will do it and whether he will deliver doesn't count that much.


Specialized in: 3 Billion Euros - Value - Ceo
Print article      Bookmark this page
Related Articles 
21st Century Leadership - How to keep work flowing to achieve business goals (Popularity: ): A common question asked by leaders is "How can I overcome blockages that reduce the likelihood that my goals will be achieved?" In most cases, these blockages are caused by people who don't know they need to do something or don't understand the importance of something they need to do. The irony of these blockages is that the people causing them want to do a good job and don't want to ...
21st Century Leadership - Making it easy for followers (Popularity: ): The best leaders make it easy for people to follow them. People follow leaders who provide clear direction by making it easy to know what is happening, and what they need to do, when and with whom.Leaders need people to work together to achieve business goals. In the past, web and mobile technology was not a significant tool for leaders.However advances in web and mobile technology can now make it ...
21st Century Management - Where everyone manages (Popularity: ): In the 20th century, management was largely handled by managers and supervisors who communicated with the people doing the work. In most cases, workers were responsible for managing their own time to get work done.Near the end of the 20th century, globalization, developments in technology and outsourcing caused managers to start looking for management solutions that can operate both within and beyond their organization. At lot of solutions were proposed, ...
Work Management is now available to everyone (Popularity: ): Work management is an essential subset of management used to get work done. Typical work management activities are: • Managing goals • Sorting out relevant tasks • Planning tasks • Organizing work • Managing meetings • Involving people outside your work teams • Keeping stakeholders informed • Coordinating work and teams • Creating ToDo lists • Reporting Progress • Managing personal and team timeMajor constraints on Work Management While intensively studying how people actually (naturally) work together to get work done, we ...
Work Networking - The easy way to manage work (Popularity: ): Social networking has revolutionized the way people can find out what is happening outside work. Work networking will revolutionize the way people find out what is happening at work. In most workplaces, people find out what is happening, and what they need to do for relevant tasks, through networks of people around those tasks. These people networks keep the work flowing. Some innovative managers have tried to employ social networking ...

Related Business 
CEO Talent Search (Popularity: ): Began as HR Consulting firm in 1999, CEO (CEO Consulting) has had a humble start with its unique approach to Building High Performance Organizations using the platform of “Self Directed Work Teams” (SDWT), one of the most sought-after models in Corporate India today. Within a short span of time the turnkey change management interventions took CEO to PAN India and South East Asian markets. CEO has always believed that with ...
Six Billion (Popularity: ): An online magazine of narrative journalism. There are six billion people in the world. Each has a story to tell.
Pinnacle CEO Recruiters (Popularity: ): Practice is focused on CEO jobs with business services companies.
CEO Space Maryland (Popularity: ): CEO Space and the CEO Space Power Team offers its members an adventure in Cooperative Capitalism. The state of the world’s economy has proven that Competitive Capitalism is a failed model; Cooperative Capitalism is its replacement.
Trelleborg Sealing Solutions (Popularity: ): Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative engineered solutions accelerate performance for customers in a sustainable way. The Trelleborg Group has annual sales of about SEK 21 billion (EUR 2.3 billion, USD 3.2 billion) in over 40 countries.
Billion Puzzles (Popularity: ): The best games site of Billion Puzzles with action games, arcade games, cartoons games, and puzzles games designed especially for all the players of Billion Puzzles with all time fun and enjoyment.
Platinum Electrical Contractors (Popularity: ): Master Electrician licensing has also provided Platinum with a very broad service spectrum. (In 2010 CEO Josh Nicholls was invited to join the board of Master Electricians Australia, a major professional accolade) Platinum Electrical participates nationally at all levels of this multi-billion dollar service sector, including domestic, commercial and industrial contracting.
Security Bank Corporation, Philippines (Popularity: ): As of December 1997, SBC has an asset of Php 59 Billion and a capitalization of Php 6.8 Billion making the Bank rank 11 among the country's private domestic commercial banks in terms of resources.
Web CEO Review (Popularity: ): Web CEO is an excellent SEOM organization and promotion tool. The WebCEO is a group of software modules for optimizing your Web pages and Web sites. As your online business grows, your Web site will need to be optimized for the search engines for it to receive traffic.
The Interim CEO Network (Popularity: ): The Interim CEO Network both recruits and supplies interim executive leadership in the Silicon Valley.