Toxic Origins, Toxic Decisions: Biases in CEO Selection

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The post discusses research analyzing the correlation between the birthplaces of CEOs and the proximity of Superfund sites, aiming to identify biases in CEO selection. Researchers have identified 734 CEOs connected to Superfund sites compared to 2,267 non-Superfund CEOs. The findings suggest that CEOs from polluted areas may be risk-takers, leading to potentially higher rewards but also questionable leadership effectiveness. The research raises skepticism about correlational results while highlighting the narrative that selection biases favor risk-takers in corporate leadership, who may secure promotions based on the high variance results they produce, which can be misinterpreted as skills.
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