The average tenure of an outsider hired as a CEO
A) tends to be significantly less than for insiders.
B) is the same as that for insiders.
C) tends to be significantly higher than for insiders.
D) is tied directly to the firm's performance.
E) is less than one year.

Question

Quizplus · Accepted Answer

Research has shown that the average tenure of an outsider hired as a CEO tends to be significantly less than for insiders. Insiders tend to have a better understanding of the organization's culture, values, and operations, which helps them to be more effective in their leadership role. On the other hand, outsiders often take more time to adjust and may not have the same level of knowledge and experience with the organization.

The Average Tenure of an Outsider Hired as a CEO