Question

. The board of directors of a medium-sized corporation, ABC Inc, has appointed you as the Interim Chief Executive Officer. The company has had a stellar year reporting record high revenues and earnings per share that exceeded Wall Street analysts' expectation. However, the share price of your company has fallen. As Interim CEO, discuss some of the factors that may be contributing to this effect and what are some of the things you will do as CEO to rejuvenate the growth of this stock.

Answer 1

After being appointed as the “Interim Chief Executive Officer” in the company the first-factor one should consider is what was the reason for the fall in the share prices of the stocks? Is it a shock wave which created panic in the minds of the shareholders or is it a normal correction of the market which allowed the price to fall? Any going concern would love to continue with the same CEO as the top of the management but here in interim CEO steps in irrespective of brilliant results. This could possibly be one reason which might cause the share prices to fall. Another factor that the interim CEO must consider that although the revenues were high and earnings exceeded the expectations but has it been backed by good projects in the future otherwise these could lead to a heavy fall in the days to come. Few things that an Interim CEO must do in order to rejuvenate the growth of the stock are to bring the confidence back in the minds of the shareholders after the changes in the top management took place. It should have a media conference and discuss the future events of the companies and calm the nerves of the shareholders, projects with growth will automatically provide confidence in the minds of the shareholders.