Scarce as hen's teeth: Women CEOs in large nonprofit organizations

This study examines an underlying mechanism behind the gender gap in nonprofit executive leadership, focusing on the link between the representation of women on governing boards and the hiring of female CEOs. The analysis of 340 human services organizations with gross receipts greater than $10 million in GuideStar's database reveals that organizations where women make up between one third and half of the board are more likely to have a female CEO compared to organizations where women account for less than one third or a majority of the board. The findings suggest that nonprofit organizations are more likely to hire a female CEO when women constitute a “substantial minority” of the governing board.     

Succession planning in nonprofit organizations

Executive leadership is a critical component in the success of nonprofit organizations. An upcoming period of leadership transition is anticipated as substantial numbers of baby boomers, now at the peak of their careers, reach retirement age. With nonprofit organizations growing in both size and number, an impending leadership deficit is a concern. To help prepare for these important transition events, this study focuses on planning for executive succession. A survey exploring details of succession planning was undertaken of executive directors of 501(c)(3) charitable nonprofits and CEOs of 501(c)(4) cooperative organizations—the more business‐oriented user‐owned and controlled nonprofit organizations prominent in agricultural, utility, and finance sectors. We found that planning and preparation do not match the level of interest and concern for executive succession. Although the replacement of long‐serving leaders is acknowledged as difficult, few proactive steps are undertaken.     

Corporate Volunteering: Benefits and Challenges for Nonprofits

In the frame of corporate social responsibility, corporate volunteering is almost exclusively studied from the point of view of companies, while the perspectives of nonprofit organizations are neglected. Hence, this article focuses on the perspective of managers of nonprofit organizations on volunteer partnership projects with for‐profit companies. In the center of this article lie nonprofit managers' strategy and motivation for participating in corporate volunteering, conception of corporate volunteer activities, and the often‐cited win‐win‐win aspect. Key findings suggest that a majority of the questioned nonprofits lack strategic behavior and management tools for undertaking volunteer partnership projects with companies. Nevertheless, corporate volunteering is widely perceived as an opportunity and a promising method of raising donations for nonprofit organizations. This article suggests that the key to successful future cooperation between nonprofits and profit‐oriented organizations lies in the processes of internal evaluation and subsequent strategy development.     

New insights in reproducing transnational corporate elites: the labour market intermediation of executive search in the pursuit of global talent in Singapore

In this article, I provide new theoretical and empirical insights into the reproduction of transnational corporate elites through the process of people moving between firms’ internal labour markets rather than from expatriation. Theoretically, the article advances understandings of the reproduction of transnational corporate elites by drawing on a pioneering engagement with global talent, transnational elites and labour market intermediary discourses. I generate these new theoretical insights through an original case study of how global executive search firms in Singapore create pipelines for the recruitment of transnational corporate elites between firms’ internal labour markets. The findings also highlight the vital role of Singapore's neoliberal labour market practices, as well as its foreign talent programme to ‘win the war for talent'. By situating this research on the agency of executive search in reproducing Singapore's transnational corporate elite, the article's key contribution is to decentre North American and Western perspectives on the reproduction of knowledge on transnational corporate elites.     

Internal vs. External Successions and Their Effect on Firm Performance

An examination of 165 top management successionsin U.S. firms during 1989-91 reveals that externalsuccessions are more likely in small firms, in firmswith poor economic performance, and in firms which offer the successor several top positions (forexample, Chairman and CEO). This last findingillustrates that successor's interests and demands (suchas organizational power) are also important indetermining the final match between manager and firm. Wealso find that, on average, the postsuccessionperformance of external successors is superior to thatof internal successors. This could indicate that theBoard of Directors faces an agency problem, leadingit to appoint too often from inside.     

Into the Fire: Boards and Executive Transitions

Managing the transition an organization undergoes when one chief executive leaves and another is hired is both a defining responsibility and one of the most critical jobs a governing board faces. CompassPoint Nonprofit Services, which consulted to twenty‐eight organizations going through such transitions, found that three characteristic threats to successful transitions for nonprofit boards emerged: (1) boards underestimate the risks and costs of bad hires; (2) boards are typically unprepared for the task; and (3) boards too often focuson the problems in hiring new CEOs and fail to make full use of the opportunities in CEO transitions. This article describes the development of services to help organizations in transition, gives results from the first two years of work, and offers suggestions for support to boards and for future research.     

America's most admired companies: A descriptive analysis of CEO corporate social responsibility statements

This study analyzes the CEO corporate social responsibility statements (N = 50) of Fortune magazine's America's Most Admired Companies. The results find that CEOs describe corporate social responsibility primarily in performance and shareholder driven language. The implications of the findings are discussed and compared to previous research in the communication and business disciplines.     

The politics of top executive compensation in advanced democracies

Since the 1980s, advanced democracies have experienced CEO pay scandals at an accelerating rate. However, this course varied across countries. Existing theories come short in explaining why some democracies experienced more frequently scandals involving overcompensation of the CEOs in core industries. Further, most studies are based on the US political and corporate system, which differ from European democracies. This is problematic as these are currently the only studies we rely on when it comes to public policy making. I develop an argument, based on a critical review, on why we need more political science studies on the different policies on CEO pay. This direction of research may more accurately tackle questions such as why some democracies meet obstacles for CEO pay reforms, more than others.     

How Quickly Do Catholic Bishops Become Obsolete?

A well‐developed management literature exists that argues that new corporate chief executive officers’ performance initially increases, but for a variety of reasons it eventually peaks and then decreases; this pattern of performance is graphically depicted as an inverted U‐shaped form. The explanation is that although there might exist an appropriate match between the CEO and the organization's needs at the time of appointment, a CEO’s effectiveness will diminish because of factors such as a leveling off in learning on the part of the CEO; a reluctance on the part of CEOs to change their management style; an increased reliance on fewer, primarily internal, advisors; and the tendency for these advisors to provide CEOs only with the type of information that they want to hear. All of this is compounded by a dynamic external environment. This article applies this theory to the case of US Catholic bishops in an effort to discover whether they might follow the same pattern in leading their dioceses. Using the number of seminarians recruited as a performance measure, a pooled data set was tested for the existence of an inverted U‐shaped pattern. Instead, the findings show a monotonically decreasing impact on performance as bishop tenure increases. One possible explanation is a poor initial match between a bishop's talents and the diocese's needs.     

The Structure of Russian Organizations

This paper examines the extent to which the structure of Russian organizations is similar to that observed among organizations in the West. Data were obtained in 1995 from a sample of organizations in the greater Moscow area by means of a structured interview schedule administered to the chief executive officer within each organization. The interview schedule contained measures developed by the Aston Group which have been used widely in previous research. The structure of Russian organizations was evaluated in terms of a causal model based upon consistent findings of previous research in this area. The results suggest that the structure of Russian organizations differs in important ways from the type of structure observed in most Western organizations. The major differences are that size, specialization and formalization are positively associated with centralization in Russian organizations. It is suggested that the historical tradition of centralized rule in Russia and the criminal environment of current Russian organizations are, in part, responsible for this difference.     

Nonprofit association CEOs how their context shapes what,how, and why they learn

This qualitative study explored the learning experiences of twelve national nonprofit membership association CEOs using a phenomenological research design. While the professional context of an organization's chief executive is considered unique from other executive positions, the impact of this context on what and how CEOs learned was unclear. The findings describe association CEO learning as being affected in significant ways by the politically charged context in which the nonprofit association CEO operates with his or her board of directors. Power imbalances with staff and the board make learning through traditional organizational dialogue a less useful learning process for the CEOs. Furthermore, the feelings of isolation and vulnerability that are generated from the nonprofit association CEO context often cause CEOs to use private reflection and dialogue with their spouse as primary learning mechanisms. The study concludes that the association CEO context uniquely and profoundly shapes what, how, and why CEOs learn. Perhaps lacking the financial security of lucrative severance payments, which are often specified in employment contracts of for‐profit CEOs, the nonprofit association CEO will often temper his or her actions to avoid personal vulnerability with a politically charged board of directors.     

Examining the interplay of an organization's prior reputation,CEO's visibility,and immediate response to a crisis

In one of only a few crisis communication research studies taking a relational approach, examining the effects of a company's prior reputation in publics’ responses to a given crisis situation, Lyons and Cameron (2004) found that both reputation and response profoundly affected publics’ attitude and behavioral intentions toward an organization involved in a crisis situation, using hypothetical, fictitious organizations and crises. Using actual organizations and crises, our research team designed a 2 (reputation: good vs. bad) × 2 (crisis response: apologetic vs. defensive) × 2 (CEO visibility in immediate crisis response: visible vs. invisible) within-subjects experiment (N = 102) to examine the variances in stakeholders’ attitudes and behavioral intentions toward a company after being exposed to online video that delivered a corporate crisis response. Findings were counter-intuitive: a defensive response to a crisis is as acceptable to crisis stakeholders as an apologetic response if the CEO is visible (or audible) in the response and if the pre-crisis company-stakeholder reputation is positive. Good reputation, defensive crisis response and CEO visibility in immediate response to a crisis resulted in the best stakeholder attitudes and purchase intentions.     

Crisis in leadership or failure to plan?

During the past ten years, succession planning and managing executive transitions have emerged as important issues in the nonprofit sector. Demographers and economists have speculated for years about the potential effects of the retirement of baby boomers. The time has finally arrived: the oldest of the baby boomers are now eligible for retirement. The question that remains is how this trend will affect the nonprofit sector and the communities they serve. This study examines the issues of turnover and succession planning at the executive level, along with career development among young nonprofit professionals in Charlotte, North Carolina. Not only do the findings suggest that the community may very well see a crisis in leadership, but they also illustrate a growing disconnect between executive leaders and young professionals in nonprofit organizations. In addition to struggling with the realities of working in the nonprofit sector (limited benefits, challenging workloads), most young professionals reported that they felt undervalued by older managers and staff, and very few aspire to the position of executive director. Taken together, these findings have important implications for the local community and the broader nonprofit sector.     

The gender pay gap in nonprofit executive compensation in South Florida

In general, systemic imbalance in pay between men and women is well established, but the literature on pay imbalance is mixed for nonprofit executives. Difference in organizational size could be a relevant factor in explaining pay imbalance, as previous research suggests average female nonprofit executives lead smaller organizations. The present study examines the role of governance accreditation on the gender gap in chief executive pay, using a 2 × 2 analysis of covariance to control for organizational size (as measured by annual revenue) when comparing samples of accredited and nonaccredited organizations in South Florida. We found a wage gap for gender, with female executives averaging 12% less compensation than male executives, after controlling for organizational size. No significant effect was found for accreditation; although the only significant difference between genders was in the nonaccredited sample, the findings hint that any trend towards pay equity would be due to a pattern of the male executives in the accredited sample being paid less than their counterparts in nonaccredited organizations.     

It's Not What You Do,But Who You Are: Informal Social Control,Social Status,and Normative Seriousness in Organizations

This paper analyzes the impact of managerial social status on the normative evaluation of managerial acts in organizational contexts. We test several propositions on the relationship between social status and normative evaluation derived from Donald Black's theoretical framework on social control. The research design consists of a factorial survey of 200 managers. Each respondent evaluated the seriousness of a normatively questionable managerial act. In each vignette, the perpetrator's social status was systematically manipulated in either a high or a low condition. The results generally support the argument that the higher a manager's social status the less vulnerable that individual is to unfavorable normative evaluations, holding constant the act. The paper closes with discussion of our findings in light of social structural and rational choice perspectives on informal social control in organizations. Additionally, we discuss methodological issues related to experimental research on informal social control in organizations, the consistency of our findings with those from previous studies of social control across diverse settings, potential theoretical applications and extensions of Black's framework in organizational contexts, and practical implications for the implementation of corporate codes of conduct and corporate dispute resolution systems.     

Making a (False) Impression: The Role of Business Experience in First Impressions of CEO Leadership Ability

Recent studies have demonstrated that judgments of business leaders’ faces predict their organizations’ financial performance. To date, these predictions have been derived exclusively from the impressions of naïve perceivers. Here, we tested how perceivers’ knowledge and experience in business might relate to their judgments of CEOs’ leadership ability from nonverbal facial cues. In Study 1, business students performed similarly to non-business students when rating faces for leadership ability. Business professionals with many years of experience exhibited significantly lower accuracy than professionals without business experience in Study 2, however. Following previous research demonstrating that experience in a particular domain can ironically reduce the accuracy of individuals’ judgments, our findings suggest that perceivers’ experience in executive business management positions may inhibit them from accurately judging leadership ability from nonverbal information. Domain-specific knowledge may therefore impair the accuracy of first impressions.     

Assessing corporate planning of future sustainability initiatives in private healthcare organizations

PurposeThe research objective is to assess the corporate planning of future sustainability initiatives in private healthcare organizations.Design/methodology/approachPrivate hospital organizations have been selected using a judgmental sampling. A qualitative case study was followed in this research.FindingsThe findings shed light on corporate planning of future sustainability initiatives in private healthcare organizations.Research limitations/implicationsThe diversity of similarities and differences that has been uncovered between private healthcare organizations on corporate planning, reveals the complexity faced in trying to achieve sector-wide and or industry-wide uniformity of sustainability initiatives.Managerial implicationsThese findings offer opportunities to examine criteria to examine the corporate planning of future efforts and priorities in private healthcare sectors across countries and continents.Originality/valueThis paper distinguishes between corporate planning approaches in relation to the assessment criteria to examine future sustainability initiatives in private hospitals.     

Corporate political strategy: A framework for understanding nonprofit strategy

Nonprofit organizations operate in environments characterized by institutional demands for legitimacy. The authors argue that, given this environment, corporate political strategy is critical to a nonprofit's ability to achieve its goals, gain access to resources, and achieve a sustainable advantage. The authors develop this thesis by providing a conceptual argument that corporate political strategy is critical given the institutional nature of the environment, the conflicting demands of multiple stakeholders, and the role of the funder; and by providing contextual evidence of the role of corporate political strategy in nonprofit strategy.     

Union presence and executive compensation: An exploratory study

While executive compensation has historically attracted considerable attention and controversy, this issue is becoming increasingly more contentious as organizations attempt to cut labor costs through reengineering and downsizing. Unions, governments, and workers are becoming critical of seemingly excessive executive compensation while employees are asked to make concessions. In fact, many labor organizations are specif-ically targeting executive compensation for criticisms: Witness their web sites tracking executive pay and numerous press releases and public statements. However, do unions, through their presence in a firm, affect executive compensation? While there is con-siderable research on the determinants and correlates of executive compensation, the literature is silent on the role of unions. We investigate the distinctive effects of union presence with data on a sample of Canadianbased metalmining firms. The differences between union and nonunion firms, as well as the unique effects of union presence, are analyzed and future research suggested.     

DO BUSINESSMEN MAKE GOOD GOVERNORS?

This paper evaluates the economic performance of U.S. state governors with a business background (chief executive officer [CEO] governors). Applying a matching method, I find, first, that businesspeople tend to take office in times of economic and fiscal strain. Second, the tenures of CEO governors are associated with a 0.5 percentage points (pp.) higher annual income growth rate, a 0.4 pp. higher growth rate of the private capital stock, and a 0.6 pp. lower unemployment rate than are the tenures of non‐CEO governors. State‐level income inequality is not affected by CEO governors holding office, indicating that low‐income households benefit from the economic upswing. (JEL C21, E24, O47)