Better Sooner Than Later: What Triggers Early CEO Dismissal?

Martin, John A.; Combs, James G.
May 2011
Academy of Management Perspectives;May2011, Vol. 25 Issue 2, p82
Academic Journal
The article focuses on factors behind the early dismissal of chief executive officers (CEO) and the effects that early dismissal has. It states that the most important factor in regards to early CEO dismissal was how many board of director members owned stocks or earned stock incentives, and that claims of unethical behavior being another strong factor in CEO dismissal. It mentions that managerial processes that could delay the removal of a CEO included narcissism, managerial power, and discretion. It comments that stock prices dropped on average 4.6 percent in response to early CEO dismissal, but did not fall with a later dismissal.


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