The Leadership Gap: Why Companies Struggle to Retain Top Executives
02/12/2025
No Comments
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
May 17, 2022: -On Sunday, Oil giant Aramco reported a more than 80% surge in net profit, topping analyst expectations and setting a recent quarterly earnings record since its IPO.
The Saudi Arabian behemoth said net income jumped from 82% to $39.5 billion in the first three months, up from $21.7 billion in the same period in the previous year. Analysts polled by Reuters had forecast a net income of 38.5 billion dollars.
The record quarter for Aramco comes between a standout quarter for Big Oil, benefiting from a huge increase in oil and gas prices. Aramco said higher crude oil prices drove its earnings, surging volumes sold, and improved downstream margins.
“During the first quarter, our strategic downstream expansion progressed further in Asia and Europe. In the earnings release on Sunday, we are still developing opportunities that complement our growth objectives,” Aramco President and CEO Amin Nasser said.
“Against the backdrop of increased volatility in global markets, we are focusing on helping meet the demand for reliable, affordable, and increasingly sustainable energy.”
With a nearly $2.43 trillion market cap, Aramco crossed Apple to become the most valuable company globally. The companies’ market caps looked the same.
Aramco stock is up more than 15% in the year 2022. In March, the oil giant reported that its profit over doubled because of the ongoing increase in oil prices, driven higher by Russia’s invasion of Ukraine, which looms European Union sanctions on Russian oil, and the prospect of much tighter supply.
Aramco is reflecting an ongoing momentum in the oil and gas industry, benefiting from a 45% surge in prices. Earnings from Aramco’s global peers like BP and Shell have reached their highest level in years, despite incurring write-downs for operations in Russia following the invasion of Ukraine.
Aramco rewards the investors as a result. The company says it would use $4 billion in retained earnings to distribute bonus shares to shareholders, amounting to one share for every ten shares held. It kept its enormous dividend stable at 18.8 billion dollars, covered by a 68% increase in free cash flow to 30.6 billion dollars.
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
The leadership landscape is profoundly changing, influenced by technological advancements, shifting workforce expectations, and the need for adaptability in an unpredictable global environment.
In the fast-paced business world, corporate leaders often find themselves at the crossroads of risk and reward, where bold decisions …
Corporate leaders often navigate turbulent waters where failure is not just a possibility but an inevitable part of the journey …
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
February 12, 2025: Donald Trump has announced a 25% tariff on all steel and aluminum imports, reigniting trade tensions between the US and its key partners
February 11, 2025: The European Union is preparing retaliatory tariffs against the United States in response to newly imposed 25% U.S.
February 06, 2025: California and Texas are experiencing extreme weather, bringing widespread disruptions and safety concerns.
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
