Former CEO Directors: Lingering CEOs or Valuable Resources?

We investigate corporate governance experts' claim that it is detrimental to a firm to reappoint former CEOs as directors after they step down as CEOs. We find that more successful and more powerful former CEOs are more likely to be reappointed to the board multiple times after they step down as CEOs. Firms benefit, on average, from the presence of former CEOs on their boards. Firms with former CEO directors have better accounting performance, have higher relative turnover-performance sensitivity of the successor CEO, and can rehire their former CEO directors as CEOs after extremely poor firm performance under the successor CEOs.


Published in:
Review Of Financial Studies, 24, 3486-3518
Year:
2011
Publisher:
Oxford University Press
ISSN:
0893-9454
Keywords:
Laboratories:




 Record created 2011-12-16, last modified 2018-01-28


Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)