ABSTRACT
Today the importance still attached to exceptional managerial talent is shown by the effects that the appointment of a well-regarded chief executive can have on the share price. This is particularly true of ailing companies. The greater complexity of business today may make exceptional managerial talent even more important than in the past. 'May' because large companies are often divided into smaller subsidiaries, which are allowed a lot of independence provided they are profitable. The growth of service industries and the decline in large-scale manufacturing has made this way of organizing large companies much easier.
