Selecting a CEO: The Leader, the Business Builder, or the Technologist Case Number: CG-15 Publication Year: 2009

Posted: 4 Oct 2009

See all articles by David F. Larcker

David F. Larcker

Stanford University - Graduate School of Business

Brian Tayan

Stanford University - Graduate School of Business

Date Written: April 10, 2009

Abstract

In 2003, the board of directors of GDF decided to initiate a thorough search process to replace its existing CEO. GDF Corp was a leader in the telecommunications industry, offering network equipment and enterprise solutions to a broad range of customers around the world. The company’s business came under pressure during the technology bust of 2001 and 2002. An interim CEO was brought in to stabilize the company, but by 2003 the board realized that it needed a new CEO to bring the business up to the level of performance that the board and shareholders expected. This case describes in detail the external search process used by GDF. It also describes in detail the three finalists for the position. Readers of the case are asked to decide who they would select as GDF’s new CEO. They are also asked to structure the executive’s compensation.

Keywords: Board of Directors, CEO, compensation, Corporate Governance, labor market

JEL Classification: G3

Suggested Citation

Larcker, David F. and Tayan, Brian, Selecting a CEO: The Leader, the Business Builder, or the Technologist Case Number: CG-15 Publication Year: 2009 (April 10, 2009). Rock Center for Corporate Governance at Stanford University Teaching Case No. CG -15. Available at SSRN: https://ssrn.com/abstract=1482081

David F. Larcker (Contact Author)

Stanford University - Graduate School of Business ( email )

Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Brian Tayan

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

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