Fending knights or masked kings: toward a theoretical framework of interim CEO succession
Abstract
Purpose
There is no previous systematic and theoretical investigation of the interim CEO succession practice. This research attempts to fill the gap by studying this phenomenon and hence advance executive succession research/practice.
Design/methodology/approach
Based on agency theory, the authors propose a model and several propositions to predict what determines the origin of interim CEOs, the length of the interim tenure, and the career prospects for the interim CEO after the interim tenure.
Findings
Both firm performance and environmental uncertainty play an important role in the dynamic interim CEO succession process.
Research limitations/implications
The paper provides the foundations for future empirical research on interim CEO succession.
Practical implications
Board members at companies experiencing sudden CEO departures should choose a loyal non‐aggressive veteran to be the interim CEO so as to minimize disruption and to smooth the transition. They should use caution when choosing an internal candidate because if such a candidate is not chosen to be the permanent CEO later, a talent may be lost.
Originality/value
The research is the first to systematically examine the phenomenon of interim CEOs. The authors make a unique contribution to the literature on CEO succession.
Keywords
Citation
Liang, X., Liu, Y., Wu, S. and Zhang, S. (2012), "Fending knights or masked kings: toward a theoretical framework of interim CEO succession", Corporate Governance, Vol. 12 No. 3, pp. 367-377. https://doi.org/10.1108/14720701211234618
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited