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The Impact Of Prior Performance On Leadership Appointment In A Merger Of Equals, David A. Hirsch
The Impact Of Prior Performance On Leadership Appointment In A Merger Of Equals, David A. Hirsch
CMC Senior Theses
Leadership appointment during mergers has a logical and established precedent when there is a clear target and acquirer. However, in the extraordinary case of Merger Of Equals (MOEs) – where this is relative equal ownership, board representation, earnings contribution etc - this process is much less defined and can often have serious consequences on the merger, both in closing negotiations as well as post-merger performance. Intuition assumes the better performing CEO should and will be appointed. In practice, however, that is often not the case. It is arguable that performance can be defined through objective means (financially & operationally), yet …