Articles

Analysis by Nicole Goodkind, CNN
Published 8:26 AM EDT, Wed September 13, 2023
CNN New York

Chief executives have left their posts at an alarming rate this year.

It’s been a bad year for CEOs.

Chief executives have left their posts at an alarming rate as their performance — and their behavior — come under increased scrutiny by corporate boards.

What’s happening: Well over 1,000 CEOs have left their companies this year, according to a Challenger, Gray & Christmas report. That’s 33% more than last year and the highest total in the first seven months of the year since the staffing research company began tracking exits in 2002.

The average CEO tenure has significantly decreased from an average of 12 years to between 5 and 7 years now, according to analysts who focus on CEO succession for talent management company Ferguson Partners.

“While specific details regarding these exits are typically undisclosed, it is evident that more CEOs are exiting due to the new pressures of their roles, the relentless pace of change, and, in some cases, their own actions,” they wrote.

The role of the CEO is changing rapidly, they said, and executive boards have been struggling to keep shareholders happy.

September’s exits: At least three major CEOs have stepped down in the first two weeks of September alone.

BP CEO Bernard Looney resigned on Tuesday “effective immediately” after admitting that he had not been “fully transparent” about “historical relationships with colleagues,” according to a statement from the oil giant.

Looney had spent less than four years on the job but was a company man through and through — he was a BP lifer, joining the company in 1991 at the age of 21 as a drilling engineer and working his way up to the top position.

But ethical infractions aside, investors were disappointed with his performance well before his resignation.

On Looney’s watch, BP became the only major oil company with goals to reduce oil and gas output this decade. Shareholders weren’t too happy with the decision -— or with BP’s share price (BP), which has lagged that of its competitors.

Looney recently trimmed BP’s emission reduction goals and increased spending on crude oil and natural gas. Still, BP missed profit expectations last quarter. Shares of the company fell 1.3% on Tuesday.

Meanwhile, clothing company Express announced on Saturday that former Tyson Foods executive Stewart Glendinning would become its next CEO, replacing Timothy Baxter, effective September 15.

Baxter’s resignation was announced just one day after the company released its second-quarter results, with net sales of its Express brand and its lifestyle line UpWest decreasing 15% compared to last year. The company’s sales in retail stores were down 21%, and its e-commerce sales were down 1%. Express reported a net loss of $44.1 million, compared to a net income of $7 million in the same quarter of 2022.

Express said Baxter’s departure was not related to the company’s financial performance. Still, shares of the company are down by about 85% since Baxter joined Express in June 2019 after spending 11 years with Macy’s.

Earlier in September, Walgreens Boots Alliance said that CEO Rosalind Brewer stepped down less than three years after taking the helm at the pharmacy chain.

Brewer’s expertise is in retail, and her exit comes as Walgreens aims to focus more on health care, said Neil Saunders, managing director of GlobalData. Retail, he said, hasn’t been a driver of growth for the company.

Shares of Walgreens are down 32% so far this year. Walgreens slashed its full-year profit guidance in June, warning of softening consumer spending and a pullback in demand for Covid vaccines.

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Typically, companies don’t provide detailed reasons for why a CEO exits. Of the leaders tracked by Challenger, Gray & Christmas this year, 266 CEOs have left this year without reason. Another 182 retired, 168 either stepped down or resigned, 40 took a new opportunity, 37 had their interim positions come to an end, 32 took new positions within their companies, and 17 left for personal reasons.  Economic uncertainties and “a much faster rate of change in the business environment are  causing companies to desire new approaches, new innovations, and new strategies to compete more vigorously.

While technology has empowered humans to do some incredible things, it’s also contributed to a rise in scams. According to the Federal Trade Commission (FTC), 2.4 million consumers filed fraud complaints in 2022, with over $8.8 billion lost to scams (an increase of more than 30% compared with 2021).

Though there are many types of fraud, imposter scams were the most frequently reported scam, with artificial intelligence (AI) making it easier than ever to pretend to be someone you’re not. A global study conducted by computer security company McAfee revealed that one in four people worldwide had either experienced a voice cloning scam or knew someone who had. With the prevalence of AI scams growing every day, it’s more important than ever to stay informed and take precautionary steps to protect yourself and those around you from AI scams.

How scammers are using AI

Though fraud has been around for centuries, today’s scammers are increasingly using artificial intelligence to carry out even more sophisticated scams. Common examples of AI scams include:

Voice cloning

Voice cloning uses AI to replicate someone else’s voice. Scammers may pose as relatives or friends over the phone, fabricating a story about an emergency and asking their victim to send money immediately. Scammers can also use AI voice cloning to try and gain access to victims’ financial accounts at institutions that use voice recognition prompts for security.

CEO scam

In a CEO scam, a scammer impersonates a business’s CEO and asks an employee to make a payment or share confidential information. Since these emails or texts appear to come from the CEO, some employees won’t think twice about questioning the head of the company.

Phishing

Phishing is a common impersonation scam where the attacker aims to steal sensitive information by pretending to be a trustworthy source. Scammers may utilize AI to add personalized greetings and perfect the company’s language, which can make phishing messages seem even more legitimate and convincing.

Malicious computer codes to crack passwords

Hackers may use malicious computer codes (aka malware) to try and steal passwords and gain access to bank accounts and other confidential information. Under the guise of a legitimate software program, scammers will trick computer users into downloading programs containing malicious code. The scammers will then run these codes on the victim’s computer, which can use different methods to steal passwords.

Ways to Protect Yourself from AI Scams

The best ways to protect yourself against AI scams are to be prepared, understand these scams and be on the lookout for them. If you suspect an AI scam, use these cybersecurity tips to help keep your information safe.

Create a “safeword” to share with family and friends to help authenticate phone calls.

Scammers can use AI to replicate the sound of someone’s voice, which can be very convincing. A safeword is a quick and easy way to verify a person’s identity.

Strengthen passwords by using two-factor authentication.

Some companies require two-factor authentication before granting you access to your email or financial accounts. A two-factor authentication code can help stop scammers in their tracks, keeping you safe in the event your passwords are compromised.

Let unknown calls go to voicemail, then call back to verify identity.

Scammers only need to record you speaking for a few seconds to clone your voice. If you receive a call from an unknown number, let it ring through to voicemail. Then, if you decide it seems legitimate, you can call back to verify the identity of the person who called.

Know most banks will never initiate conversation and ask for your personal information.

Never give your personal information over the phone to someone claiming to be your bank. Most banks will never initiate a conversation over the phone to ask for your personal information. If you’re ever in doubt, hang up the phone and call your local bank branch to verify any requests.

Educate yourself.

Taking time to educate yourself about AI and how criminals use it to scam people is one of the most important things you can do to keep your money and confidential information safe. By understanding how scam artists can trick people, you’ll be in a better position to recognize AI scams and avoid falling victim to these deceptive techniques.

Terms to know.

• Deepfakes: Artificial videos or photos that synthetically replicate someone doing or saying something by using AI.
• AI Chatbots: Software programs designed to communicate with people and have full, human-like conversations.
• Natural Language Processing (NLP): Linguistics-based AI enabling computers to process human language similarly to how humans understand it.
• Machine Learning: A subset of artificial intelligence, machine learning is a computer’s ability to replicate human thinking and behavior.
• Voice Cloning: Also known as an audio deepfake, voice cloning artificially replicates someone else’s voice to make it sound nearly identical to the real person’s tone, pronunciation and intonation.
• Two-Factor Authentication (2FA): Also known as multi-factor authentication (MFA), two-factor authentication is a security method that requires two forms of identification (such as a password or fingerprint and an email or text authentication code) to access information.
• ChatGPT: ChatGPT is an AI chatbot that uses natural language processing to intelligently respond to user prompts and questions. ChatGPT was originally released in November 2022 and was developed by OpenAI, a California-based research organization.

Conclusion

The rise of publicly available AI tools like ChatGPT offers scammers a way to leverage AI to create even more sophisticated scams. While these scams can be convincing, you have the power to prevent them by recognizing the signs of an AI scam and following best practices for protecting your information.

Starting a new phase in one’s career, whether it’s local talent or a relocation hire, is a mix of excitement and stress. This sentiment is amplified for senior executives, as the transition to a higher position or the C-suite brings both new opportunities and challenges. To ensure a successful journey for these key hires, a comprehensive onboarding process is paramount. Effective onboarding not only fosters employee retention but also speaks volumes about a company’s culture.  As experts in recruiting for senior-level positions in these industries, including roles like CEO, CMO, CFO, and COO, Brooke Chase Associates understands the critical role that effective onboarding plays in shaping the success of these executives.

1. Create a Personalized Orientation:

• Design a tailored orientation to introduce executives to the company’s culture, values, and mission.
• Arrange meet-and-greets with leadership and key team members to help them understand the organizational structure.
• Incorporate casual settings with food and beverages, such as in-house happy hours, to enhance engagement.

2. Identify Support and Growth Areas:

• Recognize that every executive, like any employee, doesn’t need to possess all skills but should have a balance.
• Identify gaps during the selection process and collaborate on a plan to fill those gaps through development or team support.

3. Offer Targeted Training and Development:

• Provide specialized training and development opportunities for continuous learning.
• Show commitment to executives’ personal and professional growth, strengthening their onboarding experience.
• In-house mentorship programs aid integration and demonstrate the organization’s investment in their potential.

4. Implement a Year-long Onboarding Plan:

• Successful onboarding should span a year from the hire date.
• Regular check-ins at 30, 60, 90 days, six months, nine months, and one year ensure mutual expectations are met and provide continuous feedback.

5. Leverage Executive Search Firms:

• Utilize executive search firms that guarantee candidates’ success for a year.
• These firms can identify and resolve any potential concerns due to their strong relationships with both candidates and clients.

Additional Considerations for Relocation Hires:

• Relocation is a significant life change that affects the employee and their family.
• HR involvement at every step, offering support and resources, is crucial.
• Providing relocation assistance, temporary housing, or rent stipends eases the transition and reduces stress.
• Be prepared to reimburse candidates for all approved and IRS-compliant expenses, even if they exceed estimates.

Sustaining Engagement Beyond Onboarding:

• The onboarding program is the foundation of an executive’s tenure.
• Maintain an open-door policy for feedback, questions, and concerns after the one-year onboarding process.
• Demonstrate excitement to have executives onboard and show gratitude for their contributions to the organization.

In conclusion, Brooke Chase Associates understands that successfully onboarding new senior executives in the Bath, Kitchen Cabinet, HVAC, Plumbing, and Building Products industry requires a tailored approach that reflects the unique challenges and opportunities of these sectors. With their expertise in recruiting for positions like CEO, CMO, CFO, and COO, Brooke Chase Associates recognizes the significance of effective onboarding in fostering employee retention and building a positive company culture. By adhering to these best practices and enlisting the support of executive search firms, companies in these industries can create a solid foundation for their new leaders and maximize their potential for success. To learn more about our expertise in recruiting senior executives in these industries, click here to learn more.

By Anna Bahney, CNN
Washington, DCCNN

Housing is less affordable than it has been in about four decades. But buying or renting a home might be even less affordable now if it weren’t for the continuing impact of remote and hybrid workers that resulted from the pandemic, according to a recent study by Fannie Mae.

The study, which was an analysis of Fannie Mae’s monthly National Housing Survey, with questions asked among more than 3,000 mortgage holders, owners, and renters between January and March this year, looked at how remote and hybrid work has changed over the past few years and its impact on housing.
More people are willing to move to less expensive areas further away from offices in city centers than a few years ago, according to the report. Continuing remote and hybrid work, at levels remarkably unchanged from two years ago, is enabling people to move toward housing affordability, the study found.

The report also revealed that “affordability” is the most important factor in finding a place to live, both for renters and homeowners.

At the beginning of the year, 22% of remote and hybrid workers said they would be willing to relocate to a different region or increase their commute. Only 14% of such workers were willing to do so in the third quarter of 2021, which is used as a comparison throughout the study and was when many workplaces attempted a “return to work” until the Omicron variant of Covid-19 pushed many employers’ plans back that winter.

Home affordability is the worst it has been since 1984

Workers who are able to break their ties to living in an area because of its proximity to work are able to spread out, reducing the competition for a historically low number of homes for sale that could push prices even higher.

The research showed that among remote workers, all age and income groups have grown more willing to relocate or live farther away from their workplace since 2021. But younger workers – those between 18 and 34 – are significantly more willing than those older than them to live or commute a further distance from their work, with the share willing to do so jumping from 18% in 2021, to 30% in 2023.

“We believe this greater willingness to live farther from the…workplace may be an indication that some workers are feeling more secure about their remote work situation…or their ability to find another job if their current employer were to change its policies,” wrote the researchers, in a summary.

This is good news for remote workers during a time of crushingly low levels of home affordability.

Where we work now

Remote and hybrid work may be here to stay. Or, it’s here long enough for people to buy or rent a new home because of it, the researchers found.

Despite the demands by leaders of some prominent companies that workers need to head into the office or head out the door, the share of fully remote and hybrid workers has remained surprisingly constant in the post-pandemic era, according to the study.

In the first part of the year, 35% of respondents worked fully remote or worked a hybrid mix of sometime at a workplace and sometime at home. That was only slightly down from 36% in 2021.

While the share of workers going to a work site or office every day was unchanged at 49% in both 2021 and in 2023, the share of people working fully remote ticked up to 14% this year from 13% in 2021.

Return-to-office mandates won’t magically improve young employee’s career development.

Homeowners continue to be slightly more likely to work from home than renters. And those with more education and higher incomes are also more likely to have a work-from-home situation, which is consistent with 2021,the study found.

Only 30% of lower-income people, earning 80% of the area median income, could work remotely or hybrid in 2021, and that dropped to 27% by this year. Meanwhile 42% of upper-income people, those making 120% of the area median income, were able to work from home in 2021 and that number did not change in 2023.

Lower-income people – who are in most need of access to lower-cost housing, found further away from a city’s core – are also those least likely to work remotely, according to the survey.

‘Affordability’ has become most important

With housing affordability taking a hit over the past few years as rents rose, home prices stayed elevated and mortgage rates soared to a 22-year high, it is not surprising that “affordability” was the top factor for people when picking a new home, at 36%. This was a big jump from 2014, the last time the question was asked, when the top consideration was “neighborhood” at 49%.

Homeowners and renters both showed growth in prioritizing “affordability,” but the increase was greatest among renters, shooting up from 21% in 2014 to 46% in 2023.

“The change in preference for renters is truly remarkable, since not only did it more than double, but it represented a complete reversal of the relative importance of neighborhood cited by consumers as the top consideration in 2014,” wrote the researchers.

In addition, despite the talk about moving for more space, “home size” as a factor for picking a next home was unchanged and still outweighed by “affordability.”

Shopping for a home? There’s a lot working against you right now

“The striking shift toward affordability as the top consideration among overall survey respondents for their next move substantiates the need of households to find ways to manage around the significant rise in mortgage rates, home prices, and rents of the past few years,” the researchers wrote.

And this is impacting where people look for a home and what they prioritize when they are searching.

“Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace, particularly given that, historically, a shorter commute to denser job markets was considered a premium amenity,” the researchers wrote.

The suburbs are increasingly where people want to be, the report found, which is part of an ongoing trend since 2010. And that share has grown between 2021 and 2023.

The researchers say the change to the housing market brought about by remote workers holds broader implications for the link between housing and the labor market.

The growing share of remote-working renters and homeowners willing to live farther from their work location gives employers access to a wider labor market, which could be useful if a downturn in economic activity led to greater rates of job loss.

“Having access to a larger labor market may also reduce the adverse effect on local home prices when a major employer or industry contracts,” the researchers wrote.

About Brooke Chase Associates, Inc.
Brooke Chase Associates, Inc. is the premier executive search firm specializing in the recruitment of executive management professionals within the building materials, plumbing and kitchen/bath industries. Established in 1980, our list of clients has grown to become a virtual “Who’s Who” of both domestic and international firms for whom we have successfully recruited professionals. A testament to our success is that many of our clients have utilized our services for over 43 years. We have one of the best “Completion” and “Retention Rates” in the industry. At Brooke Chase Associates, Inc., a strong emphasis is placed on our client relationships. A retained, exclusive executive search is a strategic, not transactional, relationship with the hiring manager and human resources, the “search committee.” Our business is driven by a single principle: Successful companies start with successful people.

Brooke Chase Associates, Inc. has its Corporate Headquarters in Sarasota, FL. For additional information contact Joseph McElmeel, Chairman and CEO of Brooke Chase Associates, Inc. at 941-479-6382 or jmcelmeel@brookechase.com

Disclaimer:
Our firm provides the information in this e-Newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-Newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties or performance, merchantability, and fitness for a particular purpose.

The Notice would ban all existing and future non-compete agreements with workers, with a narrow exception in connection with the sale of a business by any individual holding at least a 25% interest in such business.

January 9, 2023
Thanks to Pillsbury Winthrop Shaw Pittman LLP

Takeaways

• The FTC has published a proposed rule for a nationwide ban on non-compete agreements with workers, including non-employees who perform work for employers.
• The proposed rule includes an exception for owners of at least 25% of a business in connection with the sale of such business, but the FTC is soliciting comments on whether the final rule should include additional exceptions.
• Any final rule is likely to include additional changes and face legal challenges to the FTC’s authority.

• A partner in a partnership, such as a worker who holds profits interests in an LLC taxed as a partnership and receives income reported on a K-1, would be deemed a covered “worker.”
• A distinction can be made between a post-employment non-compete and a non-compete that has a fixed time-based duration applicable regardless of employment status.
• Companies could still impose restrictions on competitive acts in exchange for the grant of equity or deferred compensation to an employee, and, if such employee engages in competitive acts, whether companies would be able to claw back such grants.

By:  Bill Treasurer
Excerpted from “Leadership Two Words at a Time”

You look uniquely familiar.  You, the one who has learned to believe in yourself, trust yourself and follow the quiet inner voice that says, “Why not me?”  You don’t think you’re “better” than other people; you’ve just learned through ups and downs, the gruel and the grind, and ordeals and adventures that you can find a way to overcome obstacles and finish the landing.  And when you do, you make improvements so you can land closer to perfect next time.  There is always more to do and better ways to do it.

You’re an achiever, someone blessed with diving discontent.  You’re never fully satisfied with where you are because you know that with creativity, ingenuity and effort, any ‘great job’ of today can be outdone tomorrow.  Yes, you like to compete, and yes, you like to win.  But winning is so much sweeter when you beat your own best, competing against yourself and topping your last big achievement.  You want others to top themselves too.  You expect more of yourself…and others.

You’re impatient, yes, but in a way that brings urgency to the task at hand, not in a way that adds to the risk or jeopardizes progress.  Your impatience is connected to your passion; you know that the pursuit of the outcomes will lift everyone’s skills and deepen their experience.  Progress turns on the engine of urgency.  You keep your foot on the throttle because it moves things forward.  You give a rip.

You’re a learner, a seeker, a curious venturer.  You’re alert, interested and engaged, and when you aren’t, you scan the landscape for something new to reenergize your brain cells.  Your learning is perpetual because you’re never done.  You want answers that are more precise, accurate, truthful and enduring.  You study, review and challenge, knowing skepticism is part of the calculation and thoughtfulness that lead to decisions and actions that are safer, sounder and more likely to succeed.

You pay attention to others who have traveled further down the road, accomplished grander things or overcome bigger obstacles.  You go out of your way to learn about the experiences and stories of those who are commonly ignored, dismissed or excluded.  You are humble enough to listen to everyone, and smart enough to heed advice coming from anyone.  You aim to use whatever advantages you have enjoyed to make the workplace more fair, just and equitable for everyone.  You use your voice to amplify the concerns of those whose voices are too often suppressed.  You treat no one as lesser.  Ever.

You haven’t had it easy.  You’ve experienced setbacks, barriers and people who weren’t on your side.  Despite that, or because of it, you strive to see and expect the best in others – even those who withhold those courtesies from you.  You’re a believer in human potential.  As much as you believe in your own abilities, you know that your game is upped by people who play an upped game, so you take the time to teach, coach and serve others.  You have little interest in going it alone, as your goals and aspirations are bigger than you could achieve all on your own.  Besides, working with fiercely independent individuals who choose to put the team’s interests above their own is more fun than flying solo.

Some of you can calculate numbers in your head.  Some of you have always been “good with people.”  Some of you have a knack for pinpointing risks.  Some of you have spatial awareness and can conceptualize what finished rooms or buildings will look like before they are built.  Some of you excel at forecasting scenarios and setting the master plan.  Though the talents may be different, all of you have proven yourself to yourself.  Many times over, whether in school, on the sports field, or in how responsibly you’ve performed your first jobs, you’ve shown up and gotten the job done.  You know you’re going to have to prove yourself to many others in the future – and you’re up to that challenge.  In fact, you relish it.