The outsider advantage for new CEOs

Becoming the CEO of an organization is an exciting opportunity and a daunting challenge, and researchers have found that outside hires are more effective, according to McKinsey Quarterly.

Researchers at McKinsey examined 599 chief executives at the S&P 500 companies between 2004 and 2005. They focused on "exceptional" CEOs, defined as the top 5 percent executives who increased their company's returns by over 500 percent during their tenure.

Researchers found that 22 percent of all CEOs were outside hires, but 45 percent of all exceptional CEOs were outside hires.

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