Executives and shareholders: A shift in the relationship

Albert A. Cannella

Research output: Contribution to journalArticlepeer-review

10 Scopus citations


This article suggests that a shift has developed in the ongoing relationship between executives and shareholders with shareholders gaining more power over executives. The power shift has been driven by institutional investors and hostile takeovers and is visible in changing patterns of succession. More executives are being dismissed for poor performance and are being dismissed more quickly following the onset of poor performance. Two potential negative outcomes are a decreased willingness of executives to undertake risky strategies and a decreased ability of executives to build long‐term, trusting relationships with stakeholders, even when these actions would be beneficial to shareholders. © 1995 by John Wiley & Sons, Inc.

Original languageEnglish (US)
Pages (from-to)165-184
Number of pages20
JournalHuman Resource Management
Issue number1
StatePublished - 1995
Externally publishedYes

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Applied Psychology
  • Organizational Behavior and Human Resource Management
  • Strategy and Management


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