The Correct Methodology of Selecting CEOs Essay

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The Correct Methodology of Selecting CEOs Abstract Selecting the correct methodology for recruiting your next chief executive officer is undoubtedly one of the most difficult decisions that a board of directors will ever have to make. Horse races, promotion contests, and the extensive use of executive search firms have proven to be the most common forms of selecting company’s top executives. The fight to hold to the title of CEO between internal and external candidates is cut-throat and in most cases, a popularity contest based on reputation alone. Selecting the proper method of recruitment helps companies to eliminate these battles and pick the top candidate based on their qualifications such as their credentials, experience,…show more content…
If the horse race is taking place internally, most boards still choose to search outside of the company for qualified candidates to fill the leadership position (Citrin, 2009). This allows the board to assess how well its internal employees are matching up against external applicants. Horse races can also turn into popularity contests, in which the stakeholders and board members will exercise their stakeholder power (Lawrence & Weber, 2008). This stakeholder power gives the board members and stakeholders the ability to use resources to make an event happen and secure the outcome that they see fit. In turn, this method creates a high stress environment for those competing in the horse race and can even be distracting to the organization as a whole (Citrin, 2009). According to Citrin (2009), in a horse race competition for CEO, there is a clear winner and a clear loser in the battle. In most cases, the loser will end up leaving the company to pursue other executive leadership positions which is a disadvantage because of the loss of long term, quality employee. In the fight for a corporate leadership position, the horse race methodology of selecting a CEO is dated and seems to have far more disadvantages than advantages. Promotion Contests Promotion contests are informal contests that
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