Guido Stein

Factors of CEO Failure: Mapping the Debate

The failure of the CEO has been studied at great length in the literature. We order and classify the factors that lead to CEO failure into those a CEO can influence (endogenous) and those that are given (exogenous). The absence of unanimity in the literature leads us to concluye that limited attention has been paid to the main factor: the personal characteristics of CEOs. The agency approach and method are insufficient to understand leadesrship perfomance in organizations, due to the oversimplified view of human nature on which they are based and their heavy reliance on mathematical modeling.

Introduction to Personnel Management: Rules of Thumb

This technical note aims to acquaint readers with the main personnel management policies found in enterprises. It is intended not to be exhaustive but to serve as a reference for managers in charge of their own teams, regardless of their position or department. It was not written specifically for human resources experts, although they too may find this direct academic approach – reinforced by daily practice – rather useful. People are not robots, which is to say that they cannot be automated. Therefore, two people may respond differently to the same order, incentive, or external cause. This incontrovertible reality makes management more exciting but much more difficult. Policies, which are nothing but decision-making rules integrated more or less successfully after being applied in practice, take this reality into account in the case of personnel management. Meanwhile, they contribute to the company’s smooth operation by trying to impose order where subjectivity and freedom reign. Their use does not ensure effectiveness, but their absence is a sure sign of chaos. Companies can live with some chaos, although they do not have to: management’s job is to manage or avoid it as much as possible. In addition, sound policies help us avoid many mistakes.

CEO Succession and Proprietary Directors: Evidence from Spanish Listed Firms

La version espanola de este articulo se puede encontrar en: http://ssrn.com/abstract=2324055This study advances research on CEO succession and board monitoring of senior executives by examining how proprietary directors can affect the probability of CEO dismissal. Drawing on our newly developed database covering all CEO successions occurring in all Spanish listed firms during the period 2007-2010, we propose that proprietary directors may increase the board’s monitoring efforts over the chief executive, forcing him to resign in situations of poor performance. Hypotheses are tested longitudinally, using CEO succession data taken from 111 publicly-traded firms in the Spanish ‘mercado continuo’ over a four-year period.

What Lies Behind CEO Failure

Theoretical arguments about the factorts analyzed affecting CEO failures merely reflect the practical difficulties CEOs have to deal with, starting with the challenge of managing their own competencies and incompetencies.