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Founder Involvement in CEO Turnover

Author

Listed:
  • Oskar Kowalewski

    (IESEG School of Management (LEM-CNRS-UMR 9221))

  • Aleksandra Majda-Kariozen

    (Faculty of Management, University of Lodz)

  • Blazej Socha

    (Faculty of Management, University of Lodz)

Abstract

We study the role of a company founder in its internal governance. Using a sample of 484 CEO turnovers for 2000–2015, we establish that CEOs are fired for poor performance. However, the likelihood of a poor-performing founder-CEO being fired is lower than that of an outsider CEO. Moreover,having a founder as a member of the executive or supervisory board decreasesthe likelihood that a CEO will be dismissed for poor performance. Similarly,founder ownership may have the same effect on CEO turnover. Finally, being a founder does not guarantee a poor-performing CEO a chairman position after being fired.

Suggested Citation

  • Oskar Kowalewski & Aleksandra Majda-Kariozen & Blazej Socha, 2019. "Founder Involvement in CEO Turnover," Working Papers 2019-ACF-01, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:f201807
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    References listed on IDEAS

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    Keywords

    Founder involvement; CEO turnover; Corporate governance; Firm performance;
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