it's an uphill pedal for Peloton the stock is moving lower by about 5.7 percent here in pre-market trading this is after the fitness brand announced the departure of co-founders John Foley and his sakushi in another shake-up as CEO Barry McCarthy pushes to Stage a comeback for the company now Foley's resignation that takes place immediately because she will remain in his position until October 3rd this just the latest slate of some of the executive changes the the time that we've seen this all take place in though is really remarkable as much of this was set on earlier this year you've had some of the turmoil within the company everything from some of the supply chain issues that they've had to navigate that's had them halt some production on specific lines even to the pricing mechanisms that have been wildly out of touch with what consumers who are navigating a broader inflationary environment what they are willing to or able to pay for some of those connected devices and for the connected device usership also going down that was typically one of the biggest areas that they would use for a marketing selling point so all that considered Barry McCarthy going to be much more Stern with even what they report out to the street and going forward from here with some of these changes it's clear that the board is firmly behind Barry not so much behind some of the the Legacy leadership well to be clear John Foley still I believe owns a pre-sizable state in the company right and Foley it's interesting to use that word Stern right because um saws who isn't here today but has done a lot of talking to the company reporting on the company has really drawn the contrast between these two leaders McCarthy has a much more conventional leader a more Stern leader in this cost cutting mode fully a much more a sort of outsized Personality who helped lead the company in that big initial growth push so it makes sense at this time at this phase the company that he would be stepping aside we don't know what happened behind the scenes to get him to do so but it's interesting how McCarthy is now sort of setting the stage for the next phase at the company he also spoke at an investor conference yesterday and he said we slashed pricing in order to survive but he said that worked now they're going to get to the next place we've stopped the bleeding he said I don't need to run it for cash anymore remember the company said it's going to cut 3 600 jobs yeah over the course of the year so now that they've stopped the bleeding stabilized it the question is now do they get that growth from an Amazon partnership for example which we were skeptical of when that was announced you know where does that next phase of growth come even if it's not the same magnitude of growth that they saw right like any growth where did where what does that now look like for a Peloton you know it kind of makes this larger conversation that we continue to revisit time and time again when you see a Founder CEO kind of finally step away from one of those core positions and a Harvard Business reviewers looked at this and studied companies from Google to Microsoft some major tech companies and of course Peloton in its own right one of those major fit tech companies that's out there and there is the preliminary results that they had seen that indicate founder CEO leadership is associated with a almost 10 percent higher company valuation at IPO but then it diminishes very quickly thereafter that uh with the value of having a Founder in that top seat rapidly deteriorates after the value added by a Founder CEO essentially dwindles to get this zero approximately three years after firms go public and so Peloton we're about three years after they've gone that is very interesting of course there's always exceptions to the rule I think of meta for example Facebook but look at you bringing up the hbr uh citation there I like that getting a little academic here you know this morning for those of us who didn't go to Ivy League we got to get as close as we can amen