Academy of Finland
Funding decision
Name Korkeamäki, Timo
Organisation Hanken School of Economics
Project title CEO mobility - to limit or not to limit?
Decision No. 310930
Decision date 13.06.2017
Funding,period 01.09.2017 - 31.08.2021
Funding 445 412
WebFOCUS Report
Project description
Companies commonly try to retain their managerial talent, and limit mobility of their CEOs by employment contracts, delayed compensation structures, and non-compete clauses. This project will question whether this common corporate practice is consistent with shareholder wealth maximization and whether such practices limit economic growth. Namely, when the CEO's mobility is limited due to these contracts, her human capital is more tied to the current firm, which should cause her to avoid risks, and thus be overly conservative.