Date Time
Thinking inside box? University of Toronto researchers find most CEOs are internal hires
When hiring a new chief executive officer, companies tend to draw from a surprisingly small pool of candidates – most of whom are insiders.
While it’s easier than ever for CEOs to move from one firm to another – leadership skills can be remarkably similar across firms – the majority of CEOs of companies in the S&P 500 index are actually current or former employees of the firm.
That’s according to research by Peter Cziraki, assistant professor of economics in the University of Toronto’s Faculty of Arts & Science, and Dirk Jenter, an associate professor at the London School of Economics.