It will normally take three years for a CEO to see his or her hand of the decisions he/she made during their leadership. Not if you bring along a lot of expectations. It took Jobs a lot of time to repair his Apple company. He came back in 1996, but it was only visible in 1999 (during the internet bubble) that Apple stock went up. (This is also an argument that doesn’t work for those short term bonuses.)
And sometimes is it quickly visible that a CEO has a negative impact on the companie value.
Almost three years after mister Jobs died, Apple announced again a new iPad and other products. TIm Cook is a long time CEO now. But the time Jobs ruled the company is just a bit longer than three years. It is the pure magic of the current Apple team, not any longer a flavour of Jobs. Is it accidental that the stock has peaked and is almost 30% down from it’s top on 700 dollar.
The magic is still there. But not on the highest level that used to be the case. While Apple and the valuation of the company gives no space for mistakes or a lower margin. The profit margin is huge right now. And difficult to keep this high for very long time in such a competitive space.
— Nokia (@nokia) October 22, 2013