This paper provides evidence that corporate boards violate the informativeness principle in their forced CEO turnover decisions by failing to ignore uninformative performance outcome signals. I show CEOs of firms with barely positive shareholder returns previous year are less likely be dismissed than negative returns, even though this return is conditionally uninformative. observe a similar pat...

This paper o¤ers direct evidence of the role of managerial talent in the market for CEOs. We construct two empirical measures of CEO talent based on perceptions of a CEO’s reputation and prior career outcomes. Using a newly hand-collected sample of 2,195 CEO successions between 1993 and 2005, we document that: 1) …rst-year total pay is an increasing and convex function of CEO talent, and increa...