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Someone Old Or Someone New? The Effects Of Ceo Change On Corporate Entrepreneurship, J. L. "Bert" Morrow Jr.
Someone Old Or Someone New? The Effects Of Ceo Change On Corporate Entrepreneurship, J. L. "Bert" Morrow Jr.
New England Journal of Entrepreneurship
Boards of directors often attempt to foster corporate entrepreneurship by replacing a firm’s chief executive officer (CEO). Compelling theoretical arguments and anecdotal evidence suggest that when firm performance has suffered, a new CEO is best suited to lead the firm’s creative endeavors. On the other hand, among firms that retain their existing CEO after a decline in performance, manipulating the CEO’s compensation package is a common governance practice used by boards to encourage innovation. In these cases, some have argued that increasing the CEO’s pay will encourage corporate entrepreneurship, because the CEO has been compensated for assuming additional risk. Counter …