TITLE

Better Sooner Than Later: What Triggers Early CEO Dismissal?

AUTHOR(S)
Martin, John A.; Combs, James G.
PUB. DATE
May 2011
SOURCE
Academy of Management Perspectives;May2011, Vol. 25 Issue 2, p82
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
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.
ACCESSION #
61020807

 

Related Articles

  • Board Effectiveness, Ownership Structure and Corporate Performance: Evidence from Pakistan. Irshad, Rehana; Hashmi, Shujahat Haider; Kausar, Sumera; Nazir, Muhammad Imran // Journal of Business Studies Quarterly;2015, Vol. 7 Issue 2, p46 

    This unique study has adopted an integrative approach of taking both board effectiveness and ownership structure to measure its effect on firm performance. A random sample of 100 listed non-financial companies on Pakistani Stock Market was selected for the period ranging from year 2007 to 2012....

  • Kumar exit prompts CA user worries. Musich, Paula // eWeek;4/26/2004, Vol. 21 Issue 17, p4 

    Efforts by Computer Associates International Inc. (CA) to be seen as both a technology vendor and a trusted partner are in peril after a week of scandal-driven turmoil culminating with the company's top executive being stripped of his leadership position. The board of directors' removal of...

  • CEO DISMISSAL: THE ROLE OF INVESTMENT ANALYSTS AS AN EXTERNAL CONTROL MECHANISM. WIERSEMA, MARGARETHE F.; ZHANG, YAN (ANTHEA) // Academy of Management Annual Meeting Proceedings;2008, Vol. 2008 Issue 1, p1 

    The article discusses the role of investment analysts in the decision by the company's board of directors to dismiss the chief executive officer (CEO). The authors believe investment analysts are an integral source of information which can influence the board's evaluation of the firm and its...

  • WHY CARLY'S OUT. Saporito, Bill; Taylor, Chris; Locke, Laura A.; Fonda, Daren; Thottam, Jyoti // Time;2/21/2005, Vol. 165 Issue 8, p34 

    Discusses the dismissal of Hewlett-Packard (HP) CEO Carly Fiorina. Details of Fiorina's performance as CEO at HP; Impact of criticism of Fiorina's leadership from HP's board of directors; Comments of chairwoman Patricia Dunn on the board's decision to dismiss Fiorina; Details of HP's role in the...

  • How can embattled McCann get back on track?  // Campaign;11/23/2012, Issue 47, p12 

    The article presents the author's insights regarding Nick Brien's dismissal as chief executive of McCann Worldgroup by Michael Roth, chairman and chief executive of Interpublic Group (IPG), and its impact to the company. The author states that the supporters of Brien find his exit as a difficult...

  • Cannibals and headhunters. Pascoe, Michael // Bulletin with Newsweek;02/03/98, Vol. 117 Issue 6108, p36 

    Discusses what Australian chief executives should do when they encounter trouble with their boards and face a dismissal. Don Macfarlane of Amcor failing to follow the author's previous advice; How executives should contact headhunters and prepare to leave before dismissal; Importance of...

  • BY THE NUMBERS.  // Newsweek (Atlantic Edition);2/5/2007 (Atlantic Edition), Vol. 149 Issue 6, p5 

    The article presents statistics about the hiring and firing of chief executive officers. While Europeans and the Japanese disparage America for its ruthless firing practices, the statistics show that those countries are quicker to replace CEOs than American companies, with many more European and...

  • BY THE NUMBERS.  // Newsweek (Pacific Edition);2/5/2007 (Pacific Edition), Vol. 149 Issue 6, p5 

    The article presents statistics about the hiring and firing of chief executive officers. While Europeans and the Japanese disparage America for its ruthless firing practices, the statistics show that those countries are quicker to replace CEOs than American companies, with many more European and...

  • TRUTH IS LOST AMIDST CHAOS, CORPORATE CONFESSIONALS. Sraeel, Hooly // U.S. Banker;Aug2002, Vol. 112 Issue 8, p8 

    Comments on the need for board members independence from chief executive officers. Compliance of corporations with the law; Accountability of executive teams on corporate operations; Assurance of customer satisfaction by the companies.

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