CEOs Once Seen as Irreplaceable Eventually Leave, as Apple, Uber and Nissan Show

Nvidia, the world’s most valuable company, has suddenly lost a leader closely tied to its fortunes, but it is not the first company to face the departure of a central executive. According to Sina Finance, investors call the resulting exposure “key-person risk,” and some companies have lost hundreds of millions of dollars in market value after senior leaders left. Apple lost co-founder Steve Jobs, who died of cancer; McDonald’s fired Steve Easterbrook over an improper relationship with a subordinate; and Nissan removed Carlos Ghosn as chairman in 2018 after his arrest in Tokyo on allegations including underreporting income. One exception was Wynn Resorts: its shares rose 8% the day after founder Steve Wynn resigned following sexual misconduct allegations. Leadership experts say companies may recover faster when successors are experienced operators willing to make difficult changes. Spencer Stuart’s James Citrin said credibility is key and there is no universal succession plan. At Apple, Tim Cook eased doubts through a more cautious management approach and launched dividends and share buybacks in 2012. Yale professor Jeffrey Sonnenfeld said Cook could consult experienced CEOs on Apple’s board, including Bob Iger of Disney and Mickey Drexler of Gap, while Nvidia’s current directors lack comparable long-term experience running public companies. Uber appointed Expedia CEO Dara Khosrowshahi in 2017 amid multiple crises following Travis Kalanick’s resignation. Khosrowshahi was tasked with repairing the company’s culture and preparing for a 2019 IPO while curbing billions of dollars in losses. He built a management team and later made further changes after the IPO underperformed expectations. Ghosn’s 2018 departure left Renault and Nissan with a power vacuum, talent losses and internal disputes. Renault has had three CEOs since 2019, while Nissan has undergone repeated leadership and strategy changes, including the collapse of a proposed merger with Honda. The Renault-Nissan alliance remains, but its terms have been revised; Sonnenfeld said both companies have distanced themselves from Ghosn.