Power Dynamics Within Top Management and Their Impacts on CEO Dismissal Followed by Inside Succession

Abstract

Following a power perspective, this study is a longitudinal examination of the antecedents of CEO dismissal followed by inside succession. Our theory highlights interest conflicts and competition within top management. We propose that CEO origin, CEO tenure, non-CEO inside directors, and senior executive ownership are important antecedents of CEO dismissal followed by inside succession. Evidence from a sample of 387 large U.S. corporations suggests that non-CEO senior executives frequently play an important role in CEO dismissal.