Insider Ceos Deliver Better Returns Than External Hires

An objective, smart, honest, intelligent insider is generally a much better pick than somebody from the outside. Outside hires also tend to be more expensive. Their medium pay is three million dollars more than for insight hires. An external hire will, on average, cost you more and perform worse. And yet that's the trend. In two thousand 13, between 20 and 30 % of boards replaced outgoing ceos with external hires. A few decades ago, that number was only eight to ten%.