What Would Buddy Do?
It’s good of Joe Banner to defend Andy Reid, but the Journal says his data is incorrect
Posted on October 4th, 2007 at 9:52 am by Cheesesteak Hoagie

Nope that is not actually correctIn response to the deliciously rampant speculation circulating on the Electric Internet in re: Andy Reid’s impending abdication of the Eagles head coaching role (more on that later today or tomorrow), Eagles prexy Joe Banner sat for an interview with the Daily News in which he stood up for Coach Reid and insisted that he didn’t think Big Red’s family issues were impacting his performance:

“There are really strong people out there - CEOs of massive companies, doctors, lawyers, coaches, players, cabdrivers - who are able to both deal with the challenges they face in their life and still continue to be excellent at what they do. Working with him every day, seeing him every day, that’s the category he’s in for me.

“It would be foolish to try to say it isn’t on his mind and doesn’t weigh on his mind. The same is true of all the other categories of people I mentioned. Some of those people do get to a point where the weight is too heavy and starts to trickle down to the other parts of their lives. But that’s not been the case with Andy.

Joe, that’s awful nice of you to stick up for your boy. But that’s not what the data says. According to a piece of academic work referenced in the Wall Street Journal a month ago,┬áthe personal lives of CEOs absolutely impact their performance and the financial performance of their firms.

From the Journal:

Should shareholders in a company care if the chief executive’s child dies? What if the mother-in-law passes away?

Such things don’t normally figure in investment decisions. But maybe they should, according to a recent study by three finance professors. Mining a trove of Danish government data on thousands of businesses, they were able to track links between CEO-family deaths and the companies’ profitability over a decade.

It slid by about one-fifth, on average, in the two years after the death of a CEO’s child, and by about 15% after the death of a spouse. As for an executive’s mother-in-law, the old jokes seem to hold: The researchers found that profitability, on average, rose slightly after her demise.

Although no one died in Andy Reid’s case, the situation with his kids certainly qualifies as disruptive. And by the logic of the survey, we should assume that the Birds will give up about two wins this season in the process (though 8-8 looks pretty good right now!).

I mean, who are we to speculate about Andy Reid’s personal life and situation at home, BUT it sure seems like the data suggests that his headaches on the homefront are likely to cost the Birds some wins. Our only hope at this point seems to be some sort of unfortunate accident involving his mother-in-law.

Link:
Scholars link success of firms to CEOs [Wall Street Journal, you need a subscription]
CEOs, just like us? [Wall Street Journal, you need a subscription]

Comments so far:

Link Here | October 17, 2007,

Hilarious, and insightful.

Comment by Joe Z


Link Here | November 26, 2007,

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Comment by cqkgjytmwg |


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