If a board of directors brings in an outsider to lead the company,what message is it sending to the shareholders and employees?
A)None of the internal candidates is proficient.
B)The old way of doing things is going to change.
C)The performance review process is inadequate.
D)The internal candidates are all new as well.

Question

Quizplus · Accepted Answer

Bringing in an outsider to lead the company indicates that the board of directors is looking for a change in the way things are done. It suggests that they believe an external perspective is needed to bring new ideas and strategies to the company. This message is particularly important for employees who may be resistant to change or unsure of the company's direction. Shareholders may also see this as a positive sign that the company is willing to take bold steps to improve its performance. The other choices are not relevant to the decision to bring in an outsider CEO.

If a Board of Directors Brings in an Outsider to Lead