Mike Osorio's RetailWire Blog

June 3, 2009

FROM RETAILWIRE:
Sears Holdings has been searching for a permanent chief executive officer since September 2007. Barneys New York has now been hunting for over a year for a new CEO. So, what's the problem? What do extended and unresolved searches for top executives say about companies such as Sears Holdings and Barneys?

MY COMMENTARY:
Effective leaders seldom make it to CEO because effectiveness requires talents not understood by most boards--the talents of true leadership. Boards tend to hire CEOs that can create short term shareholder value vs. long term sustainability and growth. If the boards of Sears Holdings or Barneys wanted a CEO, they'd have one. There is no shortage of folks willing to be a CEO and given the ownership of these two (financiers, NOT retailers/merchants), there are plenty of folks out there who can drive a short term P&L result.

No, these boards have chosen to go leaderless. Why is anyone's guess. In any case, it is not healthy for the viability of these companies, and is certain to lead to more talent defection because great people want to work for great leaders.

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Good CEOs are Hard to Find

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