How a Horse Race Can Change a Company
A horse race, a classic succession tactic, pits several senior executives in a contest within an established time frame to determine the company’s next chief executive officer. Many boards find it difficult to adopt this strategy for fear of disrupting the business, but it has worked for a long list of highly respected companies. The horse race approach requires careful planning and execution to mitigate the disruptions that it can cause.
Behind the romanticized facade of horse racing lies a world of injuries, drugs, and gruesome breakdowns. Horses used for racing are forced to sprint—often under the threat of whips and illegal electric-shocking devices—at speeds that can trigger traumatic brain injury or hemorrhage from their lungs. The resulting suffering, which often goes unnoticed by spectators sipping mint juleps on the track’s shaded verandahs, can manifest in compulsive behavior like biting on their gate or cribbing—contracting muscles while pulling backward and grunting—or even self-mutilation like biting at the bridle and chewing on itself.
As the sport continues to evolve, horse welfare has become a central concern. Tracks have instituted stricter rules to ensure the safety of horses, and veterinary care has improved. But it is not enough. A recent study found that a horse that races for the first time is five times more likely to die from an injury than a healthy animal that is not being used for racing.
The burgeoning awareness of animal rights issues has prompted a growing number of activists to organize anti-horse-racing demonstrations on weekends at Laurel and Pimlico racetracks. Organizers like Jennifer Sully of Maryland’s Horseracing Wrongs are able to attract large crowds and draw attention to their messages by calling on the racing industry to implement more humane practices and increase transparency about the treatment of horses.
A race horse is a highly-trained, muscular animal that runs and jumps at high speeds to earn a winning bet. To prepare a horse for its big day, the trainer will put on special shoes with sticky calks to help the animal get traction on wet tracks or muddy ones. He will also train a jockey or driver to understand the horse’s personality and running style. Before the race begins, onlookers can watch a warmup session in which a horse and its rider or driver will practice maneuvers and work together to improve their performance.
A racetrack’s betting pool is split between a commission to the track, a share for the state and in some states, breeding or other funds, and a pari-mutuel tax. The commission, or “takeout,” is deducted from the total amount of money collected and shared in varying proportions among the players. The pari-mutuel tax can add up quickly for a winning player, so bettors are wise to understand the rules of the game before they make their decisions. The takeout is usually around 12%. This is higher than a casino’s takeout, but lower than some other sports, such as golf and tennis.