The impact of hiring directors' choice‐supportive bias and escalation of commitment on CEO compensation and dismissal following poor performance: A multimethod study

Research Summary Boards of directors make high‐stake decisions that involve hiring, compensating, and dismissing CEOs. Building on theory about choice‐supportive bias and escalation of commitment, we theorize that “hiring directors” (directors who were present during a CEO's hiring) will display choice‐supportive bias and escalate commitment to poorly performing CEOs. Primary data from 73 directors indicate that directors are indeed biased...