Examining CEO Succession and the Role of Heuristics in Early-Stage CEO Evaluation
Strategic Management Journal, Forthcoming
42 Pages Posted: 17 Apr 2012
Date Written: April 16, 2012
This study develops and tests predictions regarding factors that influence early-stage CEO evaluation. We suggest that contextual elements of the CEO succession process will influence the heuristics directors employ to aid in their early evaluation of a CEO because traditional performance metrics, such as firm performance, are less diagnostic of CEO quality in the first years of their tenure. Broad empirical support for our theoretical arguments is shown in a sample of Fortune 1000 firms.
Keywords: CEO succession, Evaluative uncertainty, decision making heuristics, CEO compensation, star CEOs
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