Does experience matter? CEO successions by former CEOs

Purpose - This paper aims to investigate an interesting yet mostly ignored distinction within external CEO successions: outside successors who have previous CEO experience and those who do not. It examines stock market reaction, compensation and firm performance prior and post-succession. Design/methodology/approach - The authors used an event study, Patell Z-statistic and Rank Z-statistic to test cumulative abnormal return before and after the successions. They also used probit and OLS regressions to examine firm performance and CEO compensation prior and post-succession. Findings - The authors find that the stock market reacts positively to the hiring of an outsider who is an exCEO. Compared with firms that hire non-exCEOs, firms that hire exCEOs had higher debt ratios and greater bankruptcy chances pre-succession, but post-succession, these firms still have worse financial performances. Non-exCEOs come from better performing firms than exCEOs. There is no consistently significant difference in compensation between an exCEO and a non-exCEO, though the compensation for both increases significantly from that of the predecessors and that of their previous positions. Research limitations/implications - Future research could focus on the cost-benefit tradeoff of hiring an exCEO. It would be interesting to examine the role of the board of directors in assessing this cost-benefit tradeoff and determining the optimal choice for the firm. An important aspect that has not been sufficiently examined in the literature is the CEO fit. Hiring an exCEO may not always be the right choice for the firm. Another area for future research could examine how the post-succession performance is affected by exCEO tenure in previous CEO position(s) and whether the exCEO worked in several industries or in the same industry. Practical implications - This paper also has implications for the board of directors. There seems to be a negative transfer of human capital when it comes to hiring exCEOs. The human capital theory suggests that job-specific experience positively relates to job performance. According to Hamori and Koyuncu, prior CEO experience may lead to the formation of knowledge corridors and decision-making templates that make it difficult for individuals to take in inconsistent information or take actions that are different from past ones in a changed context. This, in turn, undermines performance . Boards of directors should put more effort into considering inside relay successions and should be cautious when hiring an outsider who has prior CEO experience. A best-of-both-worlds scenario may be for boards to hire exCEOs into top executive positions, such as COO and/or president, so as to give them a chance to be groomed for the top position and familiarize themselves with the firm while still benefiting from their prior CEO experience. Originality/value - There is very little research on the distinction between outside CEOs with previous CEO experience and those with no such experience. This paper tries to shed some light on this important issue in corporate governance in order to explain why boards of directors would hire an outsider with or without previous CEO experience

Lineage-specific Gene Expression in the Sea Urchin Embryo

Within a few days of fertilization, the sea urchin embryo develops into a small differentiated organism consisting of about 1800 cells and capable of feeding, swimming, and the further ontogenic transformations required in the succeeding weeks of larval growth. A number of distinct cell lineages that are clearly specialized at the morphological and functional levels can be discerned in the advanced embryo, and many of these can be traced back to particular sets of early blastomeres. Classical cell lineage and experimental studies (Hörstadius 1939; for review, see Angerer and Davidson 1984) have shown that certain of these lineages appear to be specified, at least in part, in consequence of the maternal components inherited in those regions of egg cytoplasm occupied by their progenitor cells. Specification of others among the early cell lineages clearly depends on inductive interactions that occur between blastomeres during cleavage. For the molecular biologist, as for his predecessors, this rapidly developing and simply constructed embryo offers the advantages of experimental accessibility. Thus, in respect to direct molecular-level analyses of gene activity in the embryo, for both specific genes and overall transcript populations and their protein products, the sea urchin is at present the best known embryonic system (e.g., reviews of Hentschel and Birnstiel 1981; Davidson et al. 1982; Angerer and Davidson 1984)

Principles And Practices Fostering Inclusive Excellence: Lessons From The Howard Hughes Medical Institute’s Capstone Institutions

Best-practices pedagogy in science, technology, engineering, and mathematics (STEM) aims for inclusive excellence that fosters student persistence. This paper describes principles of inclusivity across 11 primarily undergraduate institutions designated as Capstone Awardees in Howard Hughes Medical Institute’s (HHMI) 2012 competition. The Capstones represent a range of institutional missions, student profiles, and geographical locations. Each successfully directed activities toward persistence of STEM students, especially those from traditionally underrepresented groups, through a set of common elements: mentoring programs to build community; research experiences to strengthen scientific skill/identity; attention to quantitative skills; and outreach/bridge programs to broaden the student pool. This paper grounds these program elements in learning theory, emphasizing their essential principles with examples of how they were implemented within institutional contexts. We also describe common assessment approaches that in many cases informed programming and created traction for stakeholder buy-in. The lessons learned from our shared experiences in pursuit of inclusive excellence, including the resources housed on our companion website, can inform others’ efforts to increase access to and persistence in STEM in higher education

Oral Argument: Transformation, Troubles, and Trends

This article explores the dynamic transformation of oral argument from early in American history, its markedly changed significance relative to briefs, and where trends and innovative ideas, including some recently taking root in Tennessee, may take this enduring tradition in the future. To understand the transformation of oral argument and contemporary attitudes about it, one must be familiar with its origins and the crucial role it played in the decision-making process in England and in the formative years of the United States

Bailey Junior High and the Desegregation of Jackson Public Schools

This thesis details the history of Jackson, Mississippi through the eyes of education, specifically through the public schools, and in particular Bailey Junior High (present day Bailey Magnet School). Newspaper articles from Jackson’s primary media suppliers, along with personal interviews and academic essays, were used to gather information on the subject. Chapter One explores the early years of segregated public education in Jackson, as well as the beginning of Bailey Junior High and the community investment in Jackson Public Schools in the 1930s and 1940s. After World War II, the city’s growing population brought greater demands for classroom space, and voters approved multiple school bonds for building and expansion. Also in this period, leaders in the black community began to push for equality in their separate school system. Chapter Two diverts its focus from Bailey Junior High and chronicles the fight for desegregation in Mississippi and Jackson schools following Brown v Board in 1954. Chapter Three continues along this discussion and details the local effects of courtordered desegregation in 1970. Jackson Public Schools lost more than 10,000 white students in the following years and found itself under ever-changing desegregation schemes. Most of the efforts of school administrators revolved around stabilizing the schools and stemming white flight in this decade. Chapter Four describes the rift in community support for Jackson Public Schools that lasted into the 1980s and was illustrated in the failed school bond of 1983. The story refocuses on Bailey Junior High during this time as an example of success and failure in district schools. Chapter Five looks at more recent dissatisfaction in Jackson schools and the actions that officials have taken to surmount fhistrations. Bailey again offers an insightful cross-section of these developments on a micro level. Also in the 1990s, Jackson’s school district campaigned to keep pace with growth in suburban school funding and construction, and the city’s voters exercised greater cooperation by approving school bonds in 1991 and 2006