“Our findings suggest that such arrangements introduce frictions into managerial decisions more often than they yield efficiency gains,” the study’s authors, Ran Duchin and Denis Sosyura, wrote in their report.
“While remote working relationships have become technologically feasible, [they have] unintended effects on managerial performance and incentives,” they said.
Employee performance reviews of the long-distance CEOs found them more likely to focus on short-term performance. They also were graded as less informed about day-to-day operations and generally absent.
C.H. Robinson CEO Dave Bozeman had a choice whether to move to the Twin Cities from Detroit when he took over as chief executive of the logistics firm in 2023. His family chose to move to Minnesota.
“If I’m going to go in there and do the things that I like to do — that’s improving companies, driving performance, developing people, and really going up and to the right ... I can’t do that remotely,“ Bozeman told the Star Tribune last year. ”I have to be where the headquarters are.”
C.H. Robinson CEO Dave Bozeman strongly believes a chief executive should live where the company headquarters are located. (Leila Navidi)
He and his wife have both become involved in local nonprofits and earlier this year, he joined the 3M board of directors.