Fired or Retired? A Competing Risk analysis of CEO Turnover

I. Gregory-Smith; Steve Thompson; Peter W Wright

doi:10.1111/j.1468-0297.2008.02243.x

Fired or Retired? A Competing Risk analysis of CEO Turnover

I. Gregory-Smith, Steve Thompson, Peter W Wright

Business School

Research output: Contribution to journal › Article › peer-review

Abstract

We apply duration analysis to model the tenure and mode of exit of CEOs from FTSE 350 companies from 1996–2005, a decade in which corporate governance reforms have sought to increase the accountability of the CEO to shareholders and their representatives on the board. We find a greater likelihood of dismissal in the latter part of the period. However, we also find that the likelihood of forced departure sharply decreases from the fifth year of a CEO's tenure. We find evidence that this is because CEOs who survive beyond year four are able to entrench themselves in their position.

Original language	English
Pages (from-to)	463-481
Number of pages	19
Journal	The Economic Journal
Volume	119
Issue number	536
Early online date	18 Feb 2009
DOIs	https://doi.org/10.1111/j.1468-0297.2008.02243.x
Publication status	Published - Mar 2009

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abstract = "We apply duration analysis to model the tenure and mode of exit of CEOs from FTSE 350 companies from 1996–2005, a decade in which corporate governance reforms have sought to increase the accountability of the CEO to shareholders and their representatives on the board. We find a greater likelihood of dismissal in the latter part of the period. However, we also find that the likelihood of forced departure sharply decreases from the fifth year of a CEO's tenure. We find evidence that this is because CEOs who survive beyond year four are able to entrench themselves in their position.",

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Fired or Retired? A Competing Risk analysis of CEO Turnover

Abstract

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