Abstract
This study examines the impact of company performance and ownership on CEO turnover and tenure in Swiss companies. Both market-based and accounting-based measures of performance are found to increase the likelihood of forced CEO departure yet to be unrelated to CEO tenure. Swiss CEOs are dismissed for poor performance albeit only when they have no ties to family shareholders. CEOs who are founders or members of the founding family have tenures which are, on average, 4.5 years longer than those of non-family CEOs. Both the size of shareholdings as well as the type of shareholders is found to be decisive for CEO changes: There is some evidence that large institutional shareholders increase the likelihood of CEO dismissal. In addition, institutions and family shareholders are found to shorten CEO tenure provided that the CEO is not a member of the founding family.
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