Examining CEO Succession and the Role of Heuristics in Early-Stage CEO Evaluation

This study develops and tests predictions regarding factors that influence early-stage CEO evaluation. We suggest that contextual elements of the CEO succession process will influence the heuristics directors employ to aid in their early evaluation of a CEO because traditional performance metrics, such as firm performance, are less diagnostic of CEO quality in the first years of their tenure. Broad empirical support for our theoretical arguments is shown in a sample of Fortune 1000 firms.

Keywords: CEO succession, Evaluative uncertainty, decision making heuristics, CEO compensation, star CEOs

Suggested Citation: Suggested Citation

Graffin, Scott D. and Boivie, Steven and Carpenter, Mason A., Examining CEO Succession and the Role of Heuristics in Early-Stage CEO Evaluation (April 16, 2012). Strategic Management Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2040912