Research Magazine 2024

CEO Outside Board Directorships and CEO Turnover Sunay Mutlu

OVERVIEW

Abstract: We explore outside board directorships of CEOs and investigate whether they affect certain types of CEO turnover. We argue that CEO outside board directorships reduce the likelihood of forced turnover (i.e., dismissal) as they signal that the CEO is a powerful member of the corporate elite, which provides access to network resources that increase her abilities. Similarly, we argue that CEO participation in external board service increases the probability of voluntary turnover, as it enhances the CEO's appeal within the executive labor market. Our analyses using archival US data in the 2000 – 2015 sample period provide supporting results.

48 | Summer Research Fellowship

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