It's only natural for boards to be concerned with the market's reaction to the selection of a new CEO, but market-watching directors might do well to focus on the hiring process and disregard the stock ticker. The latest research shows no link between the market's approval of a new leader and that leader's long-term success. In fact, there's a surprisingly high probability that stock prices will go down in the long run following a welcoming bump.
Read the full article first published in the January/February 2012 issue of the Harvard Business Review.
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