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CEO: What Makes the Choice?

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  • D. A. Zhdanov

Abstract

Every business owner, if he is not the head of a company, faces the key managerial task - to find the right top-manager who will efficiently administer the company’s assets. The article shows that the productivity of the hired CEO (Chief Executive Officer) depends on two basic candidate’s qualities: level of proficiency and loyalty. A model description of the introduced relation is proposed. The author introduces a concept of the indifference curve of the manager’s efficiency and illustrates the requirements of different kinds of owners to the productivity curve for the vacant executive position. A selection algorithm to choose the candidates for the position of top-manager and an example how it works are proposed.

Suggested Citation

  • D. A. Zhdanov, 0. "CEO: What Makes the Choice?," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 1.
  • Handle: RePEc:ack:journl:y::id:116
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    File URL: https://www.ecr-journal.ru/jour/article/viewFile/116/115
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