Apple founder Steve Jobs groomed now-CEO Tim Cook for the job. Michael Dell hand selected Kevin Rollins for the top spot at Dell. And Carnival Cruise Lines CEO Micky Arison just handed the keys over to now-CEO Arnold Donald last year. But should a CEO be given full rein to select his or her replacement? Maybe not, says Stanford Graduate School of Business Professor David Larcker.
Almost 80% of handpicked CEOs underperformed the S&P 500 Index during their tenure.