Why Growing Companies Often See Their Most Innovative Employees Bolt
If you’re concerned about remaining scrappy and innovative as your head count grows, you should be — especially if going public is your endgame.Shai Bernstein, assistant professor of finance at the Stanford Graduate School of Business, recently published a research paper about the loss of in-house
TBN: Your study also found that companies with separate board chairs and CEOs saw a much bigger drop in innovation and their inventors were more likely to leave. Would you recommend that CEOs also chair their boards?Bernstein: This is just to suggest that when CEOs are more protected in some way from market pressures, they are more likely to take on more innovative or risky projects. When the CEO is also the chairman, he [or she] just has a higher level of job security. In these cases, I find that these companies are likely to be more innovative. The motivation for governance — for example, with Facebook — to keep the founders in charge is to keep the risk-taking there and shield the company from market pressures to do something short-term.
- Cannes Lions 2021: India brings home a Gold, four Silver Lions and three Bronze Lions on Day 2
- E-commerce management platform CommerceIQ raises $60 million, looks to launch India operations by 2022
- Best power banks under ₹ 1000 to buy in India for 2021
- Best business laptops in India for 2021
- India is reportedly mulling over a new crypto tax which could make trading on foreign exchanges more expensive