Why insiders have the edge when it comes to the top job – BBC

When you let your colleagues know you are leaving your job the last thing you want to hear is cheers.

Yet when Steve Ballmer announced his retirement as chief executive of Microsoft in August, shareholders did exactly that, sending the shares up more than 7%.

Holders of the stock, who have seen the once-undisputed tech leader fall far behind rivals such as Google and Apple during Ballmer’s 13-year reign, were clearly delighted at the prospect of a new leader.

But those who were hoping for an outsider with fresh ideas were disappointed when Satya Nadella, a 22-year Microsoft veteran, was chosen for the top job.

Critics say Mr Nadella’s longevity at the firm suggests that he is not a radical enough thinker.

Yet, research shows Microsoft is in good company by choosing an insider for the job.