On the departure of a chief executive officer: Scenarios and implications

This article explores three different scenarios that may lead to the departure of a chief executive officer: the voluntary departure of a CEO through resignation or retirement; dismissal for wrongdoing; and dismissal (or lack of contract renewal) when cause is not attributed and the decision appears to be driven by internal politics. Examples of actual cases of CEO termination are presented and the implications of the CEO's departure and the situation surrounding it are then analyzed in regard to the impact on the organization and its board of directors. Case examples and discussion are limited to nonprofit organizations concerned with civil rights, health, and human services-people-serving organizations with missions focused on human well-being. Articles related to CEO departures were obtained from a search of print media for the period 1988-2000. Theoretical sampling was used, in which similar cases are sought and their themes mined. The analysis of cases suggests that the circumstances surrounding the CEO's departure can provide the impetus for creative organizational changes or precipitate a crisis that brings into question whether the organization can survive.