Friday, October 25, 2013

CEOs' Divorce

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.

MR

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Comments

CEOs of major corporation obviously live very 'public' lives at least with regard to their corporation's employees and their corporations shareholders. With regard to their romantic relationships, CEOs of major corporations ought to realize that their every move is being watched by the above named groups of people and that yes in fact their getting a divorce could have a detrimental impact on their corporation.

Posted by: Tulsa Divorce Lawyer Matt Ingham | Oct 25, 2013 10:23:00 AM

These are tough things to go through for every member of the family. I have found that getting a good family lawyer in Boise, ID really made the difference for me.

Posted by: Sean Valjean | Oct 28, 2013 1:56:16 PM

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