In Business School I learned that when top leadership in a company begins to jump ship, the company is in serious financial trouble. This is typically related to compensation cuts as the company struggles to remain competitive. They have access to information we do not.
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Don't kid yourselves, they are culling the herd at the top.
Only boot-lickers and kizz-azzers allowed here anymore.
"The Emperor's New Clothes" spells it all out:
"In a corporate context, "The Emperor's New Clothes" illustrates a situation where employees and stakeholders afraid to criticize or challenge it for fear of appearing foolish or out of line." [or penalized]
So the executives I see leaving are all over 30 years of service. We had two in my line retire last week and today Levine announcement. All over 30 years.!!! If I am over 30 I would do the same thing.
It depends on why members of leadership are leaving, though. If they are leaving for bigger roles elsewhere then it is actually a positive sign that the company has developed strong talent and culture. If they are leaving for lateral roles, or lesser roles, then it is a negative sign.
Top talent in these roles are getting aggressively poached, especially in preparation for a an even tougher economic climate that may be on the horizon.
Two problems in big banking. First, the treasuries they hold as liquidity to the Fed requirements continue to devalue as rates stay high and time goes on. Part of the mark to market problem. Two, the corporate debt market is overheated and has become reckless. When you see national retailers going BK every week, it’s only a matter of time before the hits start to show up on the lender balance sheets. Bank of America is one of the biggest issuers of corporate debt in the world. You have the CEO saying is all is well, while you have the market segment that truly controls our economy saying otherwise, the consumer. People aren’t buying things they want. People are buying things they need, and it’s getting tighter and tighter as the weeks go by.
Honestly, I think there were other signs this company is not doing well financially. For instance, they claim everything is fine but have implemented furloughs every month for contractors. Why do they need to do that if everything is good to go financially? This company needs big changes from the top down to really see any change. Things are likely to get worse over time at this rate.