Hiring retirement-age CEOs

Ye Wang, Sirui Yin

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

More than 10% of the S&P 1500 companies have hired a CEO who starts the job near or above the conventional retirement age of 65 years old. This phenomenon exists among all industries and persists over time. Firms are more likely to hire retiring CEOs when the CEO job risk is high and when the firm is in distress. Retiring CEOs receive lower total compensation, the compensation structure puts a higher weight on nonequity-based compensation, and have a shorter tenure. Retiring CEOs can be beneficial to shareholders when they are hired for the right purpose.

Original languageEnglish
Pages (from-to)641-665
Number of pages25
JournalEuropean Financial Management
Volume27
Issue number4
DOIs
StatePublished - Sep 2021

Keywords

  • CEO
  • distress
  • retirement age

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