Is it good or bad for senior executives to have strong interpersonal ties to the CEO? We argue that a strong relationship with the CEO raises the likelihood that a top manager stays in office or makes an upward career move when the CEO leaves office voluntarily. At the same time, such interpersonal ties also reinforce the negative spillover effects of a dismissal of the CEO on the career prospects of the manager concerned. Our empirical analysis lends support to both arguments. We contribute to managerial succession research by underlining the ambivalence of interpersonal ties within top management teams.

corporate governance, interpersonal ties, top executive careers, top executive turnover, top management teams
Network Formation (jel D85), Firm Employment Decisions; Promotions (hiring, firing, turnover, part-time, temporary workers, seniority issues) (jel M51), Corporate Finance and Governance: General (jel G30)
dx.doi.org/10.1007/BF03342740, hdl.handle.net/1765/134020
Schmalenbach Journal of Business Research
Rotterdam School of Management (RSM), Erasmus University

Hilger, S, Richter, A., & Schaffer, U. (2014). Hanging Together, Together Hung? Career Implications of Relationship Ties with the CEO for Top Managers. Schmalenbach Journal of Business Research, 6(1), 8–32. doi:10.1007/BF03342740