Daily
Speculations
The current pet recommendation of corporate governance reformers is that the jobs of CEO and chairman should be held by separate people. The Spec Duo is all for good corporate governance, but when we took up pencil and envelope to see if such companies actually do better in the stock market than those with combined CEO-Chairmen, we came to a startling conclusion.
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CEO
Chairman is the same person |
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2002 |
1/4/02-Present |
YTD |
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Average |
-16.4% |
-17.7% |
-0.9% |
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Stdev |
27.3% |
28.6% |
14.8% |
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Count |
378 |
378 |
378 |
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Z
Score |
-11.7 |
-12.1 |
-1.2 |
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CEO
Chairman is not the same person |
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2002 |
1/4/02-Present |
YTD |
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Average |
-23.0% |
-22.8% |
3.6% |
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Stdev |
31.4% |
32.2% |
25.0% |
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Count |
122 |
122 |
122 |
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Z
Score |
-8.1 |
-7.8 |
1.6 |
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S&P500 |
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2002 |
1/4/02-Present |
YTD |
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Return |
-22.5% |
-22.3% |
0.3% |
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