Can powerful allies protect the CEO against performance declines? The role of the CEO's subgroup power in CEO dismissal

• Published in: Strategic management journal Vol. 44; no. 11; pp. 2818 - 2830
• Main Authors: You, Jihae, Shin, Taekjin, Chung, Yunhyung
• Format: Journal Article
• Language: English
• Published: Chicago Wiley Periodicals Inc 01.11.2023
• Subjects: Boards of directors; Chief executive officers; Chief executives; Dismissal; Financial performance; Power; Risk reduction; Social identity; Strategic management; Terminations

Research summaryDrawing on research about power and faultlines, we identify the subgroup of directors in the board who share the same social identities with the CEO (i.e., CEO subgroup) and develop a concept of CEO subgroup power. We examine how CEO subgroup power affects the board's decision t...