-
The Experience
-
About Stanford GSB
About Our Degree Programs
-
-
The Programs
-
Full-Time Degree Programs
Non-Degree & Certificate Programs
-
-
Faculty & Research
-
Faculty
Faculty Research
Research Hub
Centers & Institutes
-
-
Insights
-
Topics
-
-
Alumni
-
Welcome, Alumni
-
-
Events
-
Admission Events & Information Sessions
-
Separation Anxiety: The Impact of CEO Divorce on Shareholders
Separation Anxiety: The Impact of CEO Divorce on Shareholders
Stanford Closer Look Series. October
2013
There are at least three potential ways in which a CEO divorce might impact a corporation and its shareholders:
- It might reduce the executive’s control or influence over the organization.
- It might affect his or her productivity, concentration, and energy levels.
- Third, it can influence attitudes toward risk.
We examine these in detail, and ask:
- Should shareholders and boards be concerned when a CEO and spouse separate?
- Should the board make the CEO “whole” in order to restore equity incentives to where they were prior to divorce?
- Is divorce a private matter, or should companies disclose this information to shareholders?