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Interim CEOs are more likely to inflate earnings to advance their careers

Nov 19, 2015, 20:24 IST

Cisco

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New research published in the Academy of Management Journal finds that interim chief executives are less effective than permanent CEOs.

The lack of efficacy is partly blamed on "the disruption in strategic decision-making and the fragmentation of top management teams," reports CFO.com.

According to the research, interim CEOs also "engage in considerably more earnings manipulation than permanent successors." By manipulating earnings, many of the very same CEOs are promoted to the CEO position on a permanent basis.

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The report finds that interim chiefs are prone to "actively manage their impressions on key stakeholders by engaging in income-increasing earnings management, thereby improving their promotion prospects when the interim period ends."

Executives say these are the 5 hardest cities to lead a team in (Business Insider)

A new survey by Robert Half reveals the five toughest cities for CFOs and other executives to lead a team in.

Atlanta tops the list, followed by Philadelphia and Seattle.

On a positive note, an overwhelming number of employees surveyed said they are happy with their company's leadership.

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How to disagree effectively (SmartBlog on Leadership)

Karen Kimsey-House, the CEO of The Coaches Training Institute, argues that being able to disagree effectively is "critical in creating alignment and shaping direction. It's also an important aspect of generating creative solutions."

She believes holding firm to your opinions while being open to other points of view allows for a disagreement to "become a dynamic opportunity to expand our thinking."

Among her four tips for better engaging in a disagreement, she suggests always being curious and listening deeply.

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