When Founders Flounder*

* Pascal Levensohn, Levensohn Venture Partners, WSJ 1/23/06, pg. B5

Warning Signs Warning Signs

Members of a board of directors should know when a chief executive is in trouble and may need to be replaced.  Six common warning signs are:

1. The CEO resists or rejects board input. 2. The CEO disengages from daily tasks in favor

of outside boards, vacations, or community activities.

3. The CEO displays emotional, combative behavior, such as defensive responses to legitimate questions.

4. Board members hear bad news from employees or other directors—not the CEO.

5. The CEO claims ignorance or problems, or blames others for failures.

6. The CEO directs other executives to stonewall board inquiries.