The Last Day In The Life Of A CEO
This week marked the departure of George Roach, CEO of Premier African Minerals, a man who has been steering his company since 2007.
What should be remembered is that at least in the small-cap zone, win or lose, CEOs are generally going around with a gun at their head. Both financially and psychologically, this is a tough place to be. This is made even tougher, as due to stock market rules, most of the battles they fight, and issues they come across are faced in private.
The swan on the water analogy is appropriate here in the sense that whether a CEO is doing nothing, or working frantically, it will always look calm (or relatively calm) on the surface. The reality of small caps remains that most will ultimately fail, a few will soar, but all will be vulnerable to black swan events, and bad actors.
The bad actors in this case would be shorters, who will do and say anything to bring such companies down, or those who have failed in business themselves.
The final issue for small caps, may actually be the most important: the quality of the management. Indeed, as someone who has interviewed dozens, perhaps hundreds of CEOs over the years, it is interesting to note how much one can tell from the first 30 seconds of an interview.
The ideal CEO is obviously one who knows his onions. That said, watch out for the smoothest talkers. There is a goldilocks zone in all of this.
We have seen some of the goldilocks zone, a mix of CEOs with a strategy and experience, turning shells around and / or getting investors inspired by what they are doing.
Roach, who founded Premier in 2007, will continue in his role until 31 August 2025 to allow for an orderly transition.
The move follows the terms of his Executive Service Agreement signed in December 2012. Roach is classified as a “good leaver,” and the agreement allows him a 12-month period post-departure to exercise any outstanding share options.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
