Research into CEO selection suggests that smaller boards choose generalist candidates to enhance diversity of experience or expert knowledge.
Sometimes CEO selection can seem like a mystery to outsiders, a game of hit and miss, an art more than a science. New research, however, sheds light on the process: smaller boards tend to pick generalist CEOs over specialists.
A statistical analysis of thousands of data points by a team of academics based around the world reveals that smaller boards tend to eschew the benefits of specialist expertise to plump for all-rounders.
In a report on the research the team says the behaviour appears to be driven by the store of experience already present on a board.
“A lack of diverse experience in a small board with fewer directors makes it
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