Got a plan in the pipeline? Nominating committee's information processing in executive successions. Issue 10 (20th November 2017)

• Record Type: Journal Article
• Authors: Walther, Axel; Calabrò, Andrea; Morner, Michèle
• Is Part Of: Management decision. Volume 55:Issue 10(2017)
• Page Start: 2200
• Page End: 2217
• Publication Date: 2017-11-20
• Subjects: Information processing -- Boards of directors -- Executive successions -- Nominating committees; Management -- Periodicals; 658.403
• DOI: 10.1108/MD-07-2016-0479
• Languages: English
• ISSNs: 0025-1747

Abstract

Abstract : Purpose: The purpose of this paper is to examine how information-processing mechanisms between nominating committees (NCs), incumbent executives, board chairs, and shareholders affect the comprehensiveness of executive succession processes. Design/methodology/approach: The authors employ an explanatory multiple-case study that comprises eight CEO and CFO succession cases in large German publicly traded firms. Findings: The findings reveal that comprehensiveness is determined by four key information-processing mechanisms: the effectiveness of NC's information sharing, absorbing disagreement, and integrating heterogeneous opinions; board chair leadership (i.e. an apprentice board leadership structure in association with the board chair's openness to ideas); the breadth and depth of information sharing between executives and NCs; and the extent and timing to which major shareholders influence succession processes. Research limitations/implications: The authors summarize the findings in a conceptual framework and develop a set of propositions to guide future research on the topic. Such studies may want to test the suggestions in a quantitative way, preferably in a multinational context. Originality/value: The authors' emerging conceptual framework contributes a set of information-processing variables by which NCs engage in comprehensive executive successions with incumbent executives, board chairs, and major shareholders and offers a multiechelon approach to study executive successions.