Raids, Rewards, and Reputations in the Market for Managerial Talent
- 11 August 2003
- journal article
- Published by Oxford University Press (OUP) in The Review of Financial Studies
- Vol. 16 (4), 1315-1357
- https://doi.org/10.1093/rfs/hhg031
Abstract
We find that executives who jump to chief executive officer (CEO) positions at new employers come from firms that exhibit aboveaverage stock price performance. This relationship is more pronounced for more senior executives. No such relationship exists for jumps to non-CEO positions. Stock options and restricted stock do not appear to significantly affect the likelihood of jumping ship, but the existence of an “heir apparent” on the management team increases the likelihood that executives will leave for non-CEO positions elsewhere. Hiring grants used to attract managers are correlated with the equity position forfeited at the prior employer and with the prior employer's performance.Keywords
This publication has 57 references indexed in Scilit:
- THE RELATIONSHIPS AMONG ORGANIZATIONAL CONTEXT, PAY DISPERSION, AND AMONG MANAGERIAL TURNOVER.The Academy of Management Journal, 2002
- CEO Succession: Insiders versus OutsidersSSRN Electronic Journal, 2000
- The Other Side of the Trade‐Off: The Impact of Risk on Executive CompensationJournal of Political Economy, 1999
- CEO Incentives and Firm SizePublished by National Bureau of Economic Research ,1998
- Detecting long-run abnormal stock returns: The empirical power and specification of test statisticsJournal of Financial Economics, 1997
- Factors affecting the number of outside directorships held by CEOsJournal of Financial Economics, 1996
- The Internal Economics of the Firm: Evidence from Personnel DataThe Quarterly Journal of Economics, 1994
- Stock-based incentive compensation and investment behaviorJournal of Accounting and Economics, 1993
- Do Short-Term Objectives Lead to Under- or Overinvestment in Long-Term Projects?The Journal of Finance, 1993
- Why Hang on to Losers? Divestitures and TakeoversThe Journal of Finance, 1992