According to a study in the Wall Street Journal, a CEO’s personal life directly affects his or her company’s overall performance. Spouse passes, profitability slides. Mother-in-law kicks it, profitability rises. No kidding. Even more interesting is a related study that the bigger and swankier a house the CEO buys, the worse the company performs.
And guess who, among others, that study spotlights?
One CEO looked at was Trevor Fetter of Tenet Healthcare Corp., who bought a 10,057-square-foot manse in the Dallas area around the start of 2005. Since then, Tenet’s stock is off more than 60%, while the broader market has risen. A spokesman for the hospital chain said it was aware of the study but had no comment.
The investor takeaway? Look to the obit pages and real estate sales for your insider information.
