CEO Performance In Severe Crises – The Role of Newcomers

CEO Performance In Severe Crises – The Role of Newcomers

Author(s)
João Amador
José Tavares
Sharmin Sazedj
Category:
Policy Briefs /
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Policy Briefs

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ABOUT THIS POLICY BRIEF

Wich CEO to hire? Newcomer vs Experienced insider

A firm’s optimal choice of a CEO involves a key tradeoff of selecting a CEO new to the firm and the function – who may require a period of ‘learning by doing’, versus an experienced insider – who masters ‘business as usual but may fall prey to an ‘experience trap’, becoming incapable of performing in new and challenging circumstances.

About Author(s)

João Amador
João Amador is an Assistant Professor (Adjunct) at Nova School of Business and Economics where he teaches Macroeconomics and European Economy. He has also taught Microeconomics and Macroeconomics in other departments of Universidade Nova and in executive programs. He has completed his Ph.D. in Economics in 2000.
José Tavares
José Tavares earned his doctorate in Economics at Harvard University, where he specialized in Political Economy and Macroeconomics, and is currently professor of economics at Universidade Nova de Lisboa and Research Fellow at the Centre for Economic Policy Research (CEPR) in London.
Sharmin Sazedj
Sharmin Sazedj is currently an Economics PhD student at Nova School of Business and Economics, where she has also been working as an invited teaching assistant since 2010. (...)