TITLE

CEOs Under Fire: The Effects of Competition from Inside Directors on Forced CEO Turnover and CEO Compensation

AUTHOR(S)
Mobbs, Shawn
PUB. DATE
June 2013
SOURCE
Journal of Financial & Quantitative Analysis;Jun2013, Vol. 48 Issue 3, p669
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This study examines board monitoring when a credible chief executive officer (CEO) replacement is on the board. Inside directors whose talents are in greater demand externally, as reflected by their holding outside directorships, are more likely to become CEOs, and their presence is associated with greater forced CEO turnover sensitivity to accounting performance and CEO compensation sensitivity to stock performance. These results reveal that certain insiders strengthen board monitoring by serving as a readily available CEO replacement and contradict the presumption that all insiders are under CEO control. Furthermore, the results persist when accounting for the endogenous firm selection of talented inside directors.
ACCESSION #
90575794

 

Related Articles

  • The Question Of GEO Succession. Lord, Wayne // Corporate Board;Sep/Oct2014, Vol. 35 Issue 208, p1 

    The article presents a discussion on the development and selection of the chief executive officer (CEO). Topics discussed include the CEO succession and leadership development process, the strategic inside and outside selection of a CEO, and the role of corporate boards in evaluating the values...

  • Board Structure and Monitoring: New Evidence from CEO Turnovers. Lixiong Guo; Masulis, Ronald W. // Review of Financial Studies;Oct2015, Vol. 28 Issue 10, p2770 

    We use the 2003 NYSE and NASDAQ listing rules for board and committee independence as a quasinatural experiment to examine the causal relations between board structure and CEO monitoring. Noncompliant firms forced to raise board independence or adopt a fully independent nominating committee...

  • Most companies lack a formal process for succession planning.  // InsideCounsel;May2014, Vol. 24 Issue 269, p10 

    The article reports on the issues on the reliability of the process for developing chief executive officer (CEO) successors.

  • Internal vs external CEO choice and the structure of compensation contracts. Palomino, Frédéric; Peyrache, Eloïc // Journal of Financial & Quantitative Analysis;2013, Vol. 48 Issue 4, p1301 

    Any firm choosing a CEO faces a double problem: candidate selection and choice of a compensation scheme. We derive sufficient conditions where the unique optimal compensation scheme is a capped-bonus contract in a pure moral-hazard environment, while equity is used when the firm also faces...

  • CEO hiring bucks grim recruitment trend in India.  // FRPT- Finance Snapshot;5/23/2017, p53 

    The article discusses hiring of chief executive officer (CEO) by RGF Executive Search and other businesses at higher salaries; increase in their wages due to demand of senior executives who can helm expanding businesses and views of R Suresh, former managing director of RGF Executive Search, on it.

  • Why CEOs Don't Get Fired as Often as They Used To. Karlsson, Per-Ola // Harvard Business Review Digital Articles;6/15/2015, p2 

    The article reports a decrease in the number of chief executive officers (CEOs) who were dismissed from their jobs at several multinational companies in 2014 due to several reasons that include the selection of the right CEOs by boards of directors and the focus on corporate governance.

  • EXECS ON THE MOVE.  // New Zealand Management;Jul2012, Vol. 59 Issue 6, p51 

    The article presents a list of executive appointments, successions, and resignations at companies in New Zealand as of July 2012, including the appointment of Mark Adamson at Fletcher Building; the appointment of Christopher Luxon at Air New Zealand; and the appointment of Tessa Price at UDC...

  • ON BOARD.  // New Zealand Management;Jul2012, Vol. 59 Issue 6, p59 

    The article presents a list of executive appointments, successions, and resignations at companies in New Zealand as of July 2012, including the appointment of John Judge as chairman of the ANZ National Bank, the appointment of Steve Maharey at the commercialisation centre BCC, and the...

  • Taking Responsibility for Transitions at the Top. GIELLA, THOMAS; TOTTEN, MARY K. // Trustee;Nov/Dec2015, Vol. 68 Issue 10, p27 

    Boards must become more proactive when it comes to planning for the departure of one CEO and hiring a successor.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics