The Selection of an Interim CEO Boundary Conditions and the Pursuit of Temporary Leadership

More and more boards are tapping interim CEOs to temporarily fill the corner office. Prior research indicates the negative performance implications of this decision; yet, little is known about the rationale behind this decision. Our aim is to fill this research gap. Drawing on agency and human capab...

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Bibliographic Details
Published in:Journal of management Vol. 43; no. 2; pp. 455 - 475
Main Authors: Mooney, Christine H., Semadeni, Matthew, Kesner, Idalene F.
Format: Journal Article
Language:English
Published: Los Angeles, CA SAGE Publications 01.02.2017
Sage Publications Ltd
Subjects:
Appointments & personnel changes
Chief executive officers
Chief executives
Decisions
Directors
Executives (Business)
Leadership
Succession
event studies
interim CEO succession
human capabilities
agency theory
ISSN:0149-2063, 1557-1211
Online Access:Get full text
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Summary:More and more boards are tapping interim CEOs to temporarily fill the corner office. Prior research indicates the negative performance implications of this decision; yet, little is known about the rationale behind this decision. Our aim is to fill this research gap. Drawing on agency and human capabilities frameworks, we examined the contextual elements that influence a board’s decision to pursue temporary leadership. Within a sample of 375 successions occurring between 1998 and 2005, we found that boards of directors were more likely to select interim CEOs under certain succession conditions, namely, when the prior CEO was forced out and there was no heir apparent or when the prior CEO had served for a short tenure. Our results highlight the importance of context in succession selections and provide insights into why a board would pursue a decision with seemingly negative repercussions. Implications for theory and practice are discussed.
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ISSN:0149-2063
1557-1211
DOI:10.1177/0149206314535433