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research article
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.
Type
research article
Web of Science ID
WOS:000294997800008
Authors
Publication date
2011
Publisher
Published in
Volume
24
Start page
3486
End page
3518
Peer reviewed
REVIEWED
EPFL units
Available on Infoscience
December 16, 2011
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