The CEO of Chesapeake Energy (NYSE: CHK) announced his resignation today, pending the confirmation of a successor being hired.
Because the CEO was a very flamboyant abuser of his position in the company (and for most intents and purposes is a poster child for anti-business political movements everywhere) the stock price will shoot up tomorrow – the market essentially communicating that the CEO was a liability to the company.
Although getting rid of him was a first step in many that has to be implemented to truly heal the company, I would anticipate once the primary shareholders get somebody in to thoroughly analyze the situation that they will find more bugs hiding underneath the rocks once they turn them over. It will probably take them a year and a bit to clean up and subsequently I would not want to be owning any stock while they clear out this baggage. Sentiment needs to get worse.