Sentence of the day
Inherited family-owned firms who appoint a family member (especially the eldest son) as chief executive officer are very badly managed on average.That's Robin Hanson summarizing some conclusions from the paper "Why Do Management Practices Differ across Firms and Countries?" by Nicholas Bloom and John Van Reenen.
posted by John B. Chilton at 2/22/2010 07:54:00 PM
2 Comments:
I think any company that promotes someone to CEO base on bloodlines (only) is certainly destined for trouble.
And obviously this carries over to our earlier discussion about promoting someone to absolute ruler of a country based on bloodline.
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