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The relative importance of CEOS and non-CEOS over firm performance

Published online by Cambridge University Press:  05 July 2019

Alex Bolinger ,
Jeff Brookman Open the ORCID record for Jeff Brookman [Opens in a new window]  and
Paul Thistle
Alex Bolinger
Affiliation:
College of Business, Idaho State University, 921 S. 8th Ave, Pocatello, ID 83209, USA
Jeff Brookman*
Affiliation:
College of Business, Idaho State University, 921 S. 8th Ave, Pocatello, ID 83209, USA
Paul Thistle
Affiliation:
College of Business, University of Nevada, Las Vegas, 4505 Maryland Parkway, Box 456008, Las Vegas, NV 89154-6008, USA
*
*Corresponding author. Email: broojeff@isu.edu
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Abstract

The purpose of this study is to examine the relative contributions of the CEO and other (non-CEO) top management team members to firm performance. Using data from ExecuComp, we analyze 2,687 CEOs and 11,501 other top management team (TMT) members, by industry, during the period 2004–2017 using variance decomposition methods. We find that other TMT member effects are important but are smaller than CEO effects. We also find that the effect of new TMT members appointed by the CEO on firm performance is larger than the effect of continuing TMT members and that this differential effect on performance increases with CEO tenure.

Keywords

upper echelons theorymanagerial power theoryTMT turnover

Information

Type
Research Article
Information
Journal of Management & Organization , Volume 29 , Issue 1 , January 2023 , pp. 1 - 13
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2019

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