The CEO Experience Trap

• Autores: Monika Hamori, Burak Koyuncu
• Localización: MIT Sloan management review, ISSN 1532-9194, Vol. 55, Nº 1, 2013, págs. 14-15
• Idioma: inglés
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• Resumen

  • While companies increasingly seek to hire CEOs with previous experience, new research suggests that is not always a wise choice. A lot of chief executives look very successful and are very successful in a company at a point in time. They look like geniuses. However, the real test is if you take that genius and put him in a totally different situation to succeed again. Companies resort to hiring prior CEOs because they are increasingly unwilling to take the risk of hiring executives with no previous job-specific experience. They also assume that CEO job experience provides both a good track record and an understanding of the role. Data was collected on the career histories of the CEOs of S&P 500 corporations who occupied the CEO post as of 2005 and tracked their performances up to three years after their appointments to the CEO position. research found that these prior CEOs performed worse than their peers without such experience. Being a prior CEO was negatively and significantly associated with three-year average post-succession return on assets.