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Related Experiment Videos

Surviving your new CEO.

Kevin P Coyne1, Edward J Coyne

  • 1Harvard Business School, Boston, USA. kcoyne@hbs.edu

Harvard Business Review
|May 15, 2007
PubMed
Summary

CEO transitions significantly impact senior executives, often leading to job changes. Proactive engagement and alignment with the new CEO

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Area of Science:

  • Business Strategy
  • Organizational Behavior
  • Leadership Studies

Background:

  • CEO transitions are frequent in large American firms, impacting executive careers.
  • Senior management faces uncertainty, including potential firings and career shifts during CEO changes.

Purpose of the Study:

  • To investigate CEO turnover rates and their impact on remaining top management.
  • To provide insights and strategies for executives navigating CEO transitions.

Main Methods:

  • Analysis of CEO turnover data for the top 1,000 U.S. companies (2002-2004).
  • Interviews with over a dozen CEOs who led large organizations.

Main Results:

  • New CEOs frequently lead to the departure or demotion of existing top managers.
  • Executives who leave may accept lower positions, smaller firms, or early retirement.

Conclusions:

  • Executives should actively seek to support the new CEO's vision and agenda.
  • Demonstrating teamwork and achieving results are crucial for career survival and success during CEO transitions.
  • CEO transitions, while stressful, can present opportunities for career growth or new paths.

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