CIRJE-F-711 | "Board's Monitoring and Retention of Sub-standard and Powerless CEOs" |
Author Name | Sato, Meg |
Date | January 2010 |
Full Paper | |
Remarks | @ |
Abstract |
Do corporate boards look after shareholder interests? This paper shows that CEO replacement may exhibit excessive inertia, in favor of the incumbent board of directors. I show that even when there is no relationship between the board of directors and CEO, or no threat of the CEO.s power over the board of directors, there is a case in which the board wants to keep sub-standard CEOs. |