During times of uncertainty, companies tend to stay with the CEO they know, rather than making a big change and risking bringing in a new one, said Mike Kesner, partner at comp committee advisory firm Pay Governance.
For one, the comp committee may become more generous toward a current CEO as a method of retention during stretches of uncertainty, while CEOs may often feel a sense of loyalty and commitment to stay in their current positions through chaotic times, said Kesner. "I think it's a mixture of both," he said.
Meanwhile, when it comes to involuntary terminations of CEOs, that usually unfolds over multiple months or even years, Kesner told Agenda. Click here to read the full article. A subscription is required.
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