A longitudinal study of top-level executive performance

Abstract

Competency ratings were obtained from a hybrid selection system on 98 top-level executives in a predictive validity design. Hierarchical linear modeling results indicated that "resource problem-solving-oriented" competency ratings predicted initial performance. "People-oriented" competency ratings predicted subsequent performance trends. Utility estimates suggested that the system generated an additional $3 million in annual profit per candidate selected. Groups of executives with similar performance trends were identified who had encountered qualitatively different situational circumstances. Findings imply that a model of executive performance must contain main effects for person (competencies) and situation (economic–industrial) characteristics on both subsequent performance and performance trends. Future research needs to examine which situational circumstances moderate relationships between executive competencies and initial performance or subsequent performance trends. (PsycInfo Database Record (c) 2025 APA, all rights reserved)