CEO tenure: An integrative review and pathways for future research

Abstract

Research Question/Issue: Chief executive officer (CEO) tenure—the time a person spends in the CEO position—is a key observable characteristic of the CEO that has attracted considerable attention in the fields of management and accounting/finance. Yet, the research has evolved in parallel streams, and scholars have used CEO tenure as a proxy for various aspects of CEO givens and behaviors. The purpose of this paper is to consolidate, assess, and integrate the extant knowledge about CEO tenure from the fields of management and accounting/finance and, on that basis, stimulate future research. Research Findings/Insights: Our review reveals five key themes in CEO tenure research that have been studied across the management and accounting/finance fields: (1) CEO tenure and motivations; (2) CEO tenure and power; (3) CEO tenure and social capital; (4) CEO tenure and human capital; and (5) CEO tenure and stakeholder perceptions. We review the extant research along these research themes, highlighting the collective insights, contributions, and shortcomings within and between these themes. Theoretical/Academic Implications: Our review suggests that CEO tenure is a multifaceted, complex construct. To advance extant knowledge, we propose three pathways for future research: (1) substantiating knowledge within themes; (2) expanding knowledge across themes; and (3) advancing knowledge about temporal dynamics. We hope that research along those lines will help foster a richer and deeper understanding of the dynamic and complex nature of CEO tenure, which will also advance our understanding about CEOs in general. Practitioner/Policy Implications: Our study offers a comprehensive understanding of the nature of CEO tenure and its implications. Such an understanding can be leveraged to define appropriate policies and governance decisions that account for the dynamic nature of the CEO position.