CEO Succession, CEO Temporal Depth, and Top Management Team Change

Abstract

In this paper we study the implications of new CEOs’ temporal depth on the pace and extent of top management team (TMT) change. We suggest that based on their temporal depth, new CEOs leverage their impact to change the TMT. We propose that new CEOs with a longer temporal depth will initiate slower and fewer TMT changes, whereas CEOs with a shorter temporal depth will initiate faster and more TMT changes. Our paper contributes to research on time in strategic management which has mainly studied organizational consequences of executives’ temporal dispositions by shedding light on the role of CEO temporal depth in TMT changes. It also contributes to upper echelons research by introducing temporal depth as an important temporal disposition of new CEOs that influences how they change the TMT after taking office. Specifically, we highlight how CEOs’ temporal depth influences the pace and extent of TMT changes and how CEO duality moderates these relationships. Finally, we contribute to TMT turnover research by investigating the dimensions of pace and extent of TMT changes.