When the CEO is ill: Keeping quiet or going public?
CEOs represent the pinnacle of leadership in organizations. In addition to power and prestige, constant media scrutiny and pressures to exceed past levels of firm performance are often associated with this role. Although CEOs may rely on other top managers for input regarding operational decisions and long-term planning, the outcomes of strategic initiatives rest solely on their shoulders. Moreover, how CEOs are depicted in the press can greatly affect public opinion about their organizations. In recent years, CEO health and health concerns have made headlines for such well-known companies as McDonald's, Clorox, Pilgrim's Pride, and EarthLink. In this article we discuss the ramifications of disclosure and non-disclosure of serious CEO health issues, and their potential impact on shareholder wealth and succession planning. We conclude by offering a few thoughts about the future direction of CEO health.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthew J. Clayton & Jay C. Hartzell & Joshua V. Rosenberg, 2003.
"The impact of CEO turnover on equity volatility,"
166, Federal Reserve Bank of New York.
- Kenneth A. Borokhovich & Kelly R. Brunarski & Maura S. Donahue & Yvette S. Harman, 2006. "The Importance of Board Quality in the Event of a CEO Death," The Financial Review, Eastern Finance Association, vol. 41(3), pages 307-337, 08.
- Parrino, Robert, 1997. "CEO turnover and outside succession A cross-sectional analysis," Journal of Financial Economics, Elsevier, vol. 46(2), pages 165-197, November.
- Weisbach, Michael S., 1988. "Outside directors and CEO turnover," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 431-460, January.
- Dalton, Catherine M., 2006. "A recipe for success in succession planning," Business Horizons, Elsevier, vol. 49(3), pages 175-177.
When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:53:y:2010:i:1:p:21-29. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.