LAUSR

Administrative leader turnover adversely affects the organizational stability of U.S. federal executive agencies, as well as undermines presidents’ policy goals. An incentive compatibility theory of administrative leader turnover is proposed that distinguishes between proponent (policy priority) versus caretaker (non-policy priority) loyalist executive appointees. This theory predicts that the proponents’ tenure will be comparatively more stable since it reflects incentive compatibility for both the president and executive appointee compared to caretakers where such a relationship is lacking. The evidence comports with this logic by demonstrating that appointee loyalty results in a longer tenure in office when their agency constitutes a stated policy priority for the president at the time of agreed upon service compared to when this happens not to be the case. Responsive competence in executive administration requires incentive compatibility that benefits both the president and executive appointees for ensuring stable leadership of U.S. federal agencies.