Study: CEOs with top-tier MBAs no better than other CEOs

http://www.masshightech.com/stories/2010/10/18/daily5-Study-CEOs-with-top-tier-MBAs-no-better-than-other-CEOs.html

“Bolton found that CEO education played a significant role in the hiring process of a new CEO, even though he observed no strong correlation between the quality of a CEO’s MBA education and the company’s long-term performance. He said that those companies performed no better than companies led by a CEO with any other type of education, MBA or not…The resulting puzzle, said Bolton, was the preference given to candidates with degrees from high level schools despite a lack of evidence indicating these candidates led to better company performance than their average degree-holding counterparts. In explaining why companies would place such emphasis on degree quality, Bolton suggested in the report that it was due to a lack of other identifiable and measurable criteria.”

“All else being equal, they rely on what they believe to be the observable pedigrees of the executive. Of course, all else is rarely equal, especially when dealing with something as nebulous and potentially unobservable as managerial talent,” he said in the report.”

 

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