Legacy under threat: CEO entrenchment, power and governance dynamics in family firms

This article examines whether CEO entrenchment and the accumulation of power negatively impact long-term social legacy-building practices. Utilizing data from 2,637 firms across 80 countries, we find that power-motivated CEOs undermine both the practice and continuity of these social initiatives. However, our findings suggest that ownership structures—specifically family involvement—serve as a vital internal governance mechanism. By monitoring executive behavior, family involvement mitigates the detrimental effects of CEO entrenchment on social legacy-building practices. These results underscore the critical role of ownership-based governance in aligning CEO actions with long-term firm goals.