Apprentice, departure, and demotion: An examination of the three types of CEO-board chair separation

Ryan Krause, Matthew Semadeni

Research output: Contribution to journalArticle

49 Scopus citations

Abstract

Past research has consistently shown that separation of CEO and board chair roles has no systematic effect on firm performance. In this study, we introduce the different forms of such separation: apprentice, departure, and demotion. In a study of Standard & Poor's (S&P) 1500 and Fortune 1000 firms, we find that separation of the two leadership roles positively impacts future firm performance when current performance is poor, but negatively impacts future firm performance when current performance is high. We find that this effect is most dramatic for demotion separations. Finally, we test theory about the permanency of CEO-board chair separation. Our results show that the different types of CEO-board chair separation have very distinct consequences.

Original languageEnglish (US)
Pages (from-to)805-826
Number of pages22
JournalAcademy of Management Journal
Volume56
Issue number3
DOIs
StatePublished - Jun 1 2013
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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