Voluntary and Forced CEO Successions by Successor Origin and Board Composition
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Percentage of Outside Directorsa
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Origin of the New CEO
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Voluntary Successions:
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New CEO is promoted from inside the firm
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Percent of voluntary successions
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New CEO is hired from outside the firm
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Percent of voluntary successions
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Total Voluntary Successions
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Percent of Total Successions
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Forced Successions:
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New CEO is promoted from inside the firm
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Percent of forced successions
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New CEO is hired from outside the firm
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Percent of forced successions
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Total Forced Successions
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Percent of Total Successions
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Total Successions
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Data are for a sample of 969 CEO successions at 588 large public firms between 1970 and 1988. CEOs who vacate the position prior to age 60 and do not leave for other employment or for health reasons and CEOs reported by the Wall Street Journal to have been forced from their position are classified as having been forced out. An outside CEO appointment is one in which the new CEO has been employed by the firm for three years or less. Directors who are not officers of the firm are defined as outside directors.
aThe three columns are approximate divisions of the sample into thirds, based on the percentage of outsiders on the board of directors. The column totals do not exactly equal one-third of the 969 successions because a relatively large number of firms have the same board composition around the category breaks, and all firms with the same percentages are grouped together.
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