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).

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Harris: "Women are going to be a priority" in Biden administration

Sen. Kamala Harris at an event in Wilmington, Del. Photo: Drew Angerer/Getty Images

In her first sit-down interview since being named Joe Biden's running mate, Sen. Kamala Harris talked about what she'll do to fight for women if elected VP, and how the Democrats are thinking about voter turnout strategies ahead of November.

What they're saying: "In a Biden-Harris administration women are going to be a priority, understanding that women have many priorities and all of them must be acknowledged," Harris told The 19th*'s Errin Haines-Whack.