"Sam Altman's Potential as a 'Boomerang CEO' Explored"
Ousted CEOs who return to their companies, often referred to as "boomerang CEOs," including founders, tend to perform worse than first-time chief executives, according to research. A study comparing the performance of 167 boomerang CEOs to thousands of other top executives found that their companies had an annual stock performance more than 10% lower than their first-time CEO counterparts. Changes in consumer preferences, competitors, and the broader economy during their absence, particularly in fast-changing industries like tech, contribute to their underperformance. While the potential return of Sam Altman to OpenAI after his recent firing may be an exception, most boomerang CEOs face challenges in running larger and more complex firms due to their entrepreneurial background.