The Dilemma — Appointing Insiders or Outsiders as Executive Directors
Соболєва, Тетяна Олександрівна
Соболева, Татьяна Александровна
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The appointment of an executive director is one of the most important issues for each organization. Governing or supervisory boards, in the context of keeping personnel policy and career planning, often find themselves in a dilemma whether to make a choice between the candidates within the company, to choose insiders or outsiders, that is, whether they will choose an internal candidate, or employ a new executive board. Conservatively, internal candidates are usually the favorites of the administrative or supervisory boards, as it is shown that they were generally appointed to the highest positions and that they advanced faster on the stairs of the hierarchical pyramid.
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