RetailSports, Incorporated

By Nathaniel Durant, John Glynn Jr.
1999 | Case No. E65

This case describes experiences of Boards making changes with CEOs of entrepreneurial companies. The primary situation in this case is in RetailSports, Inc., an e-commerce site in the sporting goods industry. The company has a young, inexperienced CEO, but he has been performing well, in the sense that the company has met all their financial targets. The Board of Directors, however, feels that they need a change at the top because it is preventing the company from attracting more capital and would likely stand in the way of going public. The case describes in detail the conversation between some board members and the CEO where they inform him of the decision. The case asks the reader to ponder what he/she would do in the CEO’s position. Also, the case relates a number of other examples of boards replacing CEOs to compare and contrast with the RetailSports example.

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