Promote from within for more growth, study finds

04/5/2011 | CFOZone.com

Companies fare better when they promote executives from within their organization, according to a study by consulting firm A.T. Kearney and Indiana University's Kelley School of Business. S&P 500 companies that hired CEOs from their own ranks outperformed competitors over a 20-year period in areas including return on assets, revenue growth and earnings per share. The findings suggest companies should focus resources on developing employees to assume leadership positions.

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