Download This PaperRetaining Former CEOs on the Board
Conference Board Director Notes No. DN-015
10 Pages Posted: 20 Sep 2010 Last revised: 22 Feb 2012
Abstract
What are the costs and benefits of retaining the former CEO on the board? Corporate boards frequently debate this question as part of the CEO succession process. Like many governance issues, empirical evidence indicates that a number of factors are involved in and may drive this on-going boardroom debate. Research shows that the decision as to whether the departing CEO should be offered board membership may ultimately depend on a number of factors, including the former CEO’s age and whether he or she was a founder of the firm, as well as the characteristics of the incoming CEO and the company’s stock price performance.
Keywords: Board Oversight, CEO Turnover, CEO Succession
JEL Classification: M41, G3, K22, L2
Suggested Citation: Suggested Citation
Jason D. Schloetzer (Contact Author)
Georgetown University - Department of Accounting and Business Law ( email )
McDonough School of Business
Washington, DC 20057
United States