As the recent case of Uber’s founder Travis Kalanick will demonstrate there are incredible cases where successful CEOs have been removed by the investors. This is due to several reasons such as the valuation of the company on which the investors make money. Private equity professionals and venture capitalists want to stay away from risk implied by an unstable leader. Such personality also perversely affects the talent recruitment abilities of the firm. Another reason for suck unceremonious sacking could be a lack of emotional stability or even affairs with colleagues. Leaders taking frequent time off and thus losing focus is undesirable as is abusive behavior. A poor listener cannot be an able leader in the long run. Similarly, if the team assembled is not up to the expected levels, then investors will start getting wary. A maverick leader with poor cash management abilities will not stand a chance with venture capitalists. One thing a CEO must avoid at all costs in fudging the books of acocunts.

Source:http://www.bizjournals.com/stlouis/news/2017/07/04/10-reasons-investors-fire-successful-ceos.html

Uploaded Date: 07 July 2017