What is the the Boardroom Alpha Hot Seat Score?
The Boardroom Alpha Hot Seat Score is a predictive analytic designed to estimate the probability that a CEO will be dismissed for performance reasons within the next six months.
How is the Boardroom Alpha Hot Seat Score Constructed?
Drawing on more than 20 key factors — including financial metrics, CEO tenure, boardroom dynamics, and other corporate indicators — this score provides an early warning signal for potential executive turnover. Our analysis, which compared several machine learning approaches, confirmed that short-term performance metrics can yield actionable insights into future CEO dismissals, making the score a valuable tool for identifying leadership risks.
The underlying model is trained using a publicly available corpus of CEO turnover data, where exit events are coded according to voluntary, involuntary, retirement, and other types. This dataset enables our model to learn from historical patterns of CEO dismissals related to performance issues.
How is the Boardroom Alpha Hot Seat Score Used?
The empowers Boardroom Alpha Hot Seat Score empowers boards, investors, and industry analysts with an objective measure to anticipate and manage the risks associated to company and executive officer underperformance more effectively.
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