Ceo Selection

Running head: CEO Selection: A Model and Direction for future RESEARCH

CEO Selection:
A Model and Direction for Future Research
Marc R. Parise
2 Bay Hill Drive
Coal Valley, IL 61240
DBA Student, St. Ambrose University
Davenport, IA 52803
309-797-7515
Fax [phone] [e-mail] Abstract
CEO selection is one of the most important events in the life of an organization. It has never been more critical than it is today. The purpose of this paper is to use the existing literature to identify the most important variables in the selection process. A direction for future research of the effect of these variables on the selection process is suggested. Finally, a model of the variables and their influence on the selection process is developed.

CEO Selection: A Model and a Direction for Future Research CEO selection has never been more critical to the success of an organization (Khurana, 2001). The events of 9/11 have put an exclamation point on the importance of leadership, and the increase in large corporate bankruptcies is reflective of a very challenging economy. Succession is an extremely crucial decision for a company (Guthrie & Datta, 1998; Sessa & Taylor, 2000). Twenty percent of the U.S.’s largest companies replaced their CEOs in 2000 versus about 11% in 1999 (Leonard, 2001). Replacement of the individuals in these positions is a very complex process. There are an extremely limited number of candidates capable of leading strategic change (Lawler & Finegold, 1997), and the job is unique in each situation (Rock, 1977), making the search for the right person more difficult. Due to changes in the environment, the cost of an error in CEO selection has been increased (Gupta, 1992). As many as one-third fail, with another one-third are performing at a mediocre level (Sorcher, 1985). Researchers suggest future studies should focus on identifying strategic and organizational variables that might mediate the relationship between

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