Friday, October 25, 2013
From International Business Times:
CEOs must get real about their romantic relationships and the impacts of divorce, according to a Stanford Graduate School of Business study linking CEO divorces, executive pay and early retirement.
Published on Tuesday, the report -- entitled “Separation Anxiety: The Impact of CEO Divorce on Shareholders” -- warned shareholders that divorces may have drastic, regular and predictable impact.
Stock values may fall sharply on speculation about a CEO’s spouse obtaining majority control through stock transfers, for example.
Shares fell 2.9 percent on such speculation in the divorce of Harold Hamm, CEO of Continental Resources Inc. (NYSE:CLR) in March 2013, even after the company reassured investors in a news release that the divorce wouldn’t materially impact the business.
Read more here.