Article of Interest: Hiring a CEO From the Outside Is More Expensive

A new study by Equilar Inc. found that external hires for a CEO position recruited from outside a company earn more in their first year than those promoted from within.

The study looked at CEOs hired during fiscal years ended between April 30, 2007, and March 31, 2008. Its results can be found here. Outside hires tend to be paid more to offset the risks and expenses of leaving one company for another, including lost perks and equity.

Failing to plan for leader succession can be costly all around.