There comes a time in every CEO’s life when they must step down and hand over the reins of the business to a bright-eyed successor… unless you are part of a select few. These boomerang CEOs usually come back hoping to save the company they once commanded.
Adam Neumann of WeWork fame is the latest ex-CEO looking to regain his spot as the company’s head honcho…
But will it actually do anything to save his beloved company or will this potential boomerang CEO be the last piece needed to knock it down?
Are Boomerang CEOs a Good Move?
The term “Boomerang CEO”, while being a hot topic, just refers to a chief executive officer who leaves the position only to return a few years (or days) later.
Historically, a boomerang CEO will reclaim their position in the c-suite when the company is under extreme duress…
Yet as popular as it sounds, this is still a relatively uncommon phenomenon. Out of 2,000 CEO successions, only 200 of them were returning CEOs.
Not to mention, returning CEOs have historically done very little to help the companies they come back to. A 2020 study found that most boomerang CEOs actually underperformed.
TRADITIONALLY BOOMERANG CEOS RETURN TO THE JOB BECAUSE THEY STRUGGLE IN TRAINING A SUCCESSOR AND DON’T WANT TO LET GO OF THEIR COMPANY
Despite their track record, there are plenty of celebrity executive officers who’ve saved their companies from exploding upon their return…
Thanks to their successful habits. The most notable examples are:
- Steve Jobs, returning to Apple
- Bob Iger, returning to Disney
- Most recently, Sam Altman, returning to OpenAI
But even then, Steve Jobs and other successful CEOs who make their return are almost always the exception, not the rule.
So what does this mean for the Adam Neumann of WeWork?
With everything in consideration…
IT MAKES SENSE THAT WEWORK IS HESITANT TO TAKE HIM BACK
Future Of WeWork
If everything goes according to Adam Neumann’s plan…
HE’LL BECOME THE LATEST BOOMERANG CEO OF THE REAL ESTATE WORLD
WeWork, once valued at over $50 billion, had put pressure on Neumann to leave his position due to concerns over his leadership and a botched IPO.
Now, he’s offering a buyback of the company…
To which WeWork is yet to respond.
Whether Adam Newman becomes the next boomerang CEO success story or not one thing is for certain…
In business, you can’t do the same thing over and over and expect a different outcome…
Clearly, boomerang CEOs are the best examples of that.
Be Great,
GCTV Staff
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