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Sollen CEOs rotieren?

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  • Bruno S. Frey
  • Reiner Eichenberger

Abstract

The institution of a single CEO (Chief Executive Officer) has significant weaknesses. The CEO's interests diverge from those of the owners and their representants as well as other top managers. Assigning so much power to a single person is risky. Changing a CEO incurs high costs. However, the traditional alter- native, a top management team working collectively, also has serious drawbacks. A new governance institution – a team of rotating chief executive officers – combines the advan- tages of the two traditional models without being fraught with their disadvantages.

Suggested Citation

  • Bruno S. Frey & Reiner Eichenberger, 2021. "Sollen CEOs rotieren?," CREMA Working Paper Series 2021-34, Center for Research in Economics, Management and the Arts (CREMA).
    • Handle: RePEc:cra:wpaper:2021-34
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    References listed on IDEAS

    as
    1. Ulrike Malmendier & Geoffrey Tate, 2005. "CEO Overconfidence and Corporate Investment," Journal of Finance, American Finance Association, vol. 60(6), pages 2661-2700, December.
    2. Osterloh, Margit & Frey, Bruno S., 2019. "Dealing With Randomness," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 30(4), pages 331-345.
    3. Reiner Eichenberger & Michael Funk, 2009. "The Deregulation of the Political Process: Towards an International Market for Good Politics," Chapters, in: Geoffrey Brennan & Giuseppe Eusepi (ed.), The Economics of Ethics and the Ethics of Economics, chapter 8, Edward Elgar Publishing.
    4. Geoffrey Brennan & Giuseppe Eusepi (ed.), 2009. "The Economics of Ethics and the Ethics of Economics," Books, Edward Elgar Publishing, number 13632.
    5. Matteo P. Arena & Stephen P. Ferris & Emre Unlu, 2011. "It Takes Two: The Incidence and Effectiveness of Co‐CEOs," The Financial Review, Eastern Finance Association, vol. 46(3), pages 385-412, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Governance; CEO; board of directors; supervisory board; management team; rotation;
    All these keywords.

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