Fireside Chat: "CEO Markets"
Panelist(s)
Moderator(s)
Among larger U.S. companies (enterprise value greater than $1 billion) purchased by private equity firms between 2010 and 2016, almost 75% of the new CEOs are external hires with 67% being complete outsiders (Gomper, Kaplan and Mukharlyamov 2022). These results are strikingly different from studies that look at public companies, at which 72% of new CEOs in S&P 500 companies are internal promotions and 80% are internal promotions, former executives or board members (Cziraki and Jenter 2021). Why are the public company and private-equity portfolio company CEO results so different? How important is firm-specific human capital to private and public companies?
Among larger U.S. companies (enterprise value greater than $1 billion) purchased by private equity firms between 2010 and 2016, almost 75% of the new CEOs are external hires with 67% being complete outsiders (Gomper, Kaplan and Mukharlyamov 2022). These results are strikingly different from studies that look at public companies, at which 72% of new CEOs in S&P 500 companies are internal promotions and 80% are internal promotions, former executives or board members (Cziraki and Jenter 2021). Why are the public company and private-equity portfolio company CEO results so different? How important is firm-specific human capital to private and public companies?