How CEOs protect themselves against dismissal: A social status perspective

TitleHow CEOs protect themselves against dismissal: A social status perspective
Publication TypeJournal Article
Year of Publication2016
AuthorsFlickinger M., Wrage M., Tuschke A., Bresser R.
JournalStrategic Management Journal
Volume37
Issue6
Pagination1107-1117
Date PublishedJun
ISBN Number0143-2095
Accession NumberWOS:000374549300008
Abstract

In this study, we address the question of why some CEOs stay in office during a performance downturn while others don't. Taking a social status perspective, we argue that an individual's board network embeddednessas reflected in the number of outside directorshipsplays an important role in dismissal decisions. We predict that a high status of the CEO relative to the chairman of the board protects an underperforming CEO against dismissal, while the relative salience of board network outsiders can counter this effect. Using longitudinal data of large German corporations, we find support for our predictions. Ltd. Copyright (c) 2015 John Wiley & Sons, Ltd.

DOI10.1002/smj.2382