Are all CEOs driven by wealth maximization at the last stage of their career? Although extant literature based on economic rationale suggests that near-retirement CEOs are more likely to be risk averse and tend not to initiate a long-term risky strategy, we argue that at the top position and this life stage they are more likely than other individuals to be satisfied with their wealth and driven by psychological needs. It is therefore crucial to incorporate their psychological characteristics into the analysis of near-retirement CEOs’ motivation behind strategic decisions. This conceptual paper proposes three such psychological characteristics and suggests the direction and degree of their impacts on near-retirement CEOs’ strategic decision. It extends the present knowledge on CEO career horizon and decision making literature, and contributes to corporate governance practice.
