Are CEOS Different? Characteristics of Top Managers

55 Pages Posted: 18 Sep 2017 Last revised: 13 Feb 2021

See all articles by Steven N. Kaplan

Steven N. Kaplan

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); University of Chicago - Polsky Center for Entrepreneurship

Morten Sorensen

Dartmouth College - Tuck School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: September 2017

Abstract

We use a dataset of over 2,600 executive assessments to study thirty individual characteristics of candidates for top executive positions – CEO, CFO, COO and others. We classify the thirty candidate characteristics with four primary factors: general ability, execution vs. interpersonal, charisma vs. analytic, and strategic vs. managerial. CEO candidates tend to score higher on these factors; CFO candidates score lower. Conditional on being a candidate, executives with greater interpersonal skills are more likely to be hired, suggesting that such skills are important in the selection process. Scores on the four factors also predict future career progression. Non-CEO candidates who score higher on the four factors are subsequently more likely to become CEOs. The patterns are qualitatively similar for public, private equity and venture capital owned companies. We do not find economically large differences in the four factors for men and women. Women, however, are subsequently less likely to become CEOs, holding the four factors constant.

Suggested Citation

Kaplan, Steven Neil and Sørensen, Morten, Are CEOS Different? Characteristics of Top Managers (September 2017). NBER Working Paper No. w23832, Available at SSRN: https://ssrn.com/abstract=3038660

Steven Neil Kaplan (Contact Author)

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University of Chicago - Polsky Center for Entrepreneurship

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Morten Sørensen

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States

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