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Dismissing a Tarnished CEO? Psychological Mechanisms and Unconscious Biases in the Board’s Evaluation
Weber, Libby , and Margarethe Wiersema
59/3  (Spring 2017): 22-41

In today’s world, CEOs are frequently dismissed following corporate misconduct or poor performance. Yet, it is often difficult to predict when boards will dismiss the CEOs, as the same behavior often results in different decisions across firms. Taking a socio-cognitive perspective, this article explores the factors that lead a CEO to become tarnished. It then uses expectancy violation theory combined with attribution theory as well as stakeholder theory, concepts of legitimacy, and motivational theory to understand how the board evaluates the tarnished CEO.

 

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