We analyze changes in the composition of top management teams when a key member of the team (the chief executive officer [CEO]) departs We find that the probability of non-CEO top manager turnover increases markedly around times of CEO turnover Further, the magnitude of this increase depends on the relations between the tenure of the manager and tenures of the departing and incoming CEOs Departure of a long-tenured CEO has a larger effect on turnover probability for a long-tenured non-CEO manager than for a short-tenured manager Succession of a long-tenured manager as CEO has a larger effect on turnover probability for a short-tenured non-CEO manager than for a long-tenured manager We argue that these findings are at least partially the result of complementarities across these groups of coworkers that affect the value of employment relationships between senior executives and firms.
|Original language||English (US)|
|Number of pages||29|
|Journal||Journal of Law, Economics, and Organization|
|State||Published - Apr 2006|
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management