The cyclicality of CEO turnover

C. Jack Liebersohn (The Ohio State University), Heidi A. Packard (University of Michigan)

CEO turnover is highly pro-cyclical. This paper aims to explain why. We begin by showing that the cyclicality is driven almost entirely by executives of retirement age. We further provide evidence that executives time their retirement to maximize the value of their pensions. Since CEO pay is pro-cyclical and pensions are based on pay in the final years of tenure, executives have the incentive to retire when the economy is doing well. Cyclicality is particular strong in firms with strong corporate governance, which suggests that retirement cyclicality is a tool firms use to constrain CEO behavior

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Year of publication:	2019 ; Current Draft: January 2019
Authors:	Liebersohn, C. Jack ; Packard, Heidi A.
Publisher:	[Columbus, Ohio] : The Ohio State University, Fisher College of Business, Charles A. Dice Center for Research in Financial Economics
Subject:	Führungswechsel \| Executive turnover \| Altersgrenze \| Retirement \| Bruttoinlandsprodukt \| Gross domestic product \| 2006

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Extent:	1 Online-Ressource (circa 51 Seiten)
Series:	Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2189279-9. - Vol. WP 2019, 32 Charles A. Dice Working Paper ; No. 2019-32 Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2412551-9. - Vol. WP 2019-03, 032
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.2584705 [DOI]
Classification:	M12 - Personnel Management ; J26 - Retirement; Retirement Policies ; M51 - Firm Employment Decisions; Promotions (hiring, firing, turnover, part-time, temporary workers, seniority issues)
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012168936