Everyone loves a good comeback story, and the tale of the boomerang CEO is no exception. Apple founder Steve Jobs serves as a de facto illustration of the triumphant hero’s return to a company that’s since fallen into disarray after a leader’s retreat. More companies of late seem to embody that mythos, with several high-profile boomerang CEO appointments, including Bob Iger at Disney, Sergio Ermotti at UBS, and Howard Schultz, until recently, at Starbucks—for the third time.
There are several reasons why boards opt to bring back a former CEO. They’re often iconic figures who steered their company to unprecedented financial success, oversaw major expansions or M&A deals, and are already familiar with company politics, internally and externally. It’s easier to turn to a familiar face than to hire someone new. Jobs’ return to Apple proved to be a smart call, as the company went from the brink of insolvency in 1997 to turn a $309 million profit by the following year.
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