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 / Summer 2013 / Issue 71(originally published by Booz & Company)


Research Perspectives on the New CEO

The final paper is a warning to boards and recruiters not to hedge bets. If you hire a CEO to shift your company’s direction, don’t undermine that choice by keeping the old CEO around, at least not for more than a few months. Let him or her depart, ideally in friendship, but also in totality. 

Reprint No. 00185

Author Profile:

  • Matt Palmquist is a freelance business journalist based in Oakland, Calif., and the author of s+b’s Recent Research column.


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  1. Cláudia Custódio, Miguel A. Ferreira, and Pedro Matos, “Generalists versus Specialists: Lifetime Work Experience and CEO Pay,” Darden School of Business Working Paper No. 2116525, July 2012. The paper will also appear in a forthcoming issue of the Journal of Financial Economics.
  2. Abu M. Jalal and Alexandros P. Prezas, “Outsider CEO Succession and Firm Performance” (subscription or fee required), Journal of Economics and Business, vol. 64, no. 6, Nov.–Dec. 2012.
  3. Timothy J. Quigley and Donald C. Hambrick, “When the Former CEO Stays on as Board Chair: Effects on Successor Discretion, Strategic Change, and Performance” (subscription or fee required), Strategic Management Journal, vol. 33, no. 7, July 2012.
  4. For more thought leadership on this topic, see the s+b website at:
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