Private equity firms typically fire the CEOs of companies they acquire, according to a survey conducted by turnaround consultant Alix Partners and executive recruiter Vardis.

The big numbers:

  • 58% of PE firms expect to fire inherited CEOs within two years.
  • 73% of PE firms expect to fire inherited CEOs over the lifecycle of their investment.

The most common explanation given was "a lack of fit with the portfolio company's new strategic direction." In terms of exceptions to the rule, respondents said that one key success factor is having had prior CEO experience under private equity ownership.

Caveat: The exact survey question was: "Upon acquiring a new portfolio company, when do you typically replace the CEO?" ― so there might have been a bit of leading the witness here. It's also too bad that respondents weren't asked about retention rates for non-legacy CEOs (i.e., the new ones PE firms bring in).

Go deeper

The hazy line between politics and influence campaigns

Illustration: Aïda Amer/Axios

The recent firestorm over the New York Post’s publication of stories relying on data from a hard drive allegedly belonging to Hunter Biden shows the increasingly hazy line between domestic political “dirty tricks” and a foreign-sponsored disinformation operation.

Why it matters: This haziness could give determined actors cover to conduct influence operations aimed at undermining U.S. democracy through channels that just look like old-fashioned hard-nosed politics.

52 mins ago - World

"I stood up for that": Pope Francis voices support for same-sex civil unions

Pope Francis at St. Peter's Basilica in Vatican City. Photo: Vatican Pool - Corbis/Corbis via Getty Images

Pope Francis voiced his support for same-sex civil unions for the first time as pope in the documentary “Francesco,” which premiered Wednesday at the Rome Film Festival, per the Catholic News Agency.

Why it matters: The pope’s remarks represent a break from the position of the Roman Catholic Church, which has long taught that homosexual acts are “intrinsically disordered" and contrary to natural law.

2 hours ago - World

Countries waiting to see if Trump wins before moving on Israel normalization

The delegation lands at Israel's Ben Gurion airport. Photo: Jack Guez/AFP via Getty

The White House is attempting to leverage momentum from Israel's normalization deals with Bahrain and the UAE to get more Arab countries on board before the U.S. election.

Driving the news: President Trump wants Sudan's removal from the U.S. state sponsors of terrorism list to be accompanied by a pre-election announcement on Israel.