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Last dance or second chance? Firm performance, CEO career horizon, and the separation of board leadership roles
Author(s) -
Krause Ryan,
Semadeni Matthew
Publication year - 2014
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2139
Subject(s) - demotion , apprenticeship , separation (statistics) , accounting , independence (probability theory) , scholarship , business , management , dance , marketing , economics , political science , computer science , law , art , machine learning , linguistics , philosophy , statistics , mathematics , literature , human resources
In recent years, many firms have chosen to separate their CEO and board chair positions. Prior research has demonstrated that there are three forms that a CEO –board chair separation can take: apprentice, departure, and demotion. In this paper, we examine the antecedents of these three types. Our results show that the three types of separation each have different profiles in terms of the prior performance of the firm, the independence of the board, and the career horizon of the incumbent CEO . The findings in this paper provide unique insights into the factors that drive boards' structural choices. As questions about board leadership structure become more nuanced and more relevant in both scholarship and practice, a full understanding of these factors will only become more important . Copyright © 2013 John Wiley & Sons, Ltd.