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Financial Times

Boomerang chief executives provide comfort in times of crisis

Former CEOs being reappointed to their former positions to bring stability in times of crisis despite data suggesting companies with returning CEOs typically underperform the market.

Boomerang CEOs like Sergio Ermotti and Bob Iger have been reappointed to their former positions to bring stability in times of crisis.
Data shows that companies with reappointed CEOs typically underperform the market.
Research suggests that returning CEOs hurt rather than help organizations.
Boards seek reassurance when appointing former CEOs.
Bringing back a former CEO may indicate a board's failure to ensure a smooth succession process.

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