Responsibility for staffing the TMT and deciding its functional composition generally lies with the CEO. Nevertheless, the CEO’s ability to make such decisions without constraints depends to some extent on other stakeholders, such as other top executives (Finkelstein et al. 2009, p. 150). Hambrick and Mason (1984) also stressed that it is not always the CEO who makes important decisions, and that “although it is true that in most firms the chief executive officer has the most power, it still is of interest to study management teams” (p. 196). Hence, we also apply the homophily theory and hypothesize the following: