Chart of the week: Ditch the CEO, buy the shares

More than 1,400 CEOs of US companies left their jobs in 2018. Departures rise when the economy slows and earnings and share prices weaken, so it's no surprise that the number of leavers hit a ten-year high, says Ryan Derousseau in Fortune.

But CEO exits can spell opportunity. If they occur in the context of a "strategic realignment" rather than retirement or scandal, the shares tend to struggle for a year or so but then rebound and do better than their sector counterparts.

Strategic overhauls usually mean firms concentrate on improving their businesses rather than engaging in gimmicks such as share buybacks. After three years, capital expenditures increase by 36% on average.

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Simon English, Evening Standard

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