Competency ratings were obtained from a hybrid selection system on 98 top-l
evel executives in a predictive validity design. Hierarchical linear modeli
ng results indicated that "resource problem-solvingoriented" competency rat
ings predicted initial performance. "People-oriented" competency ratings pr
edicted subsequent performance trends. Utility estimates suggested that the
system generated an additional $3 million in annual profit per candidate s
elected. Groups of executives with similar performance trends were identifi
ed who had encountered qualitatively different situational circumstances. F
indings imply that a model of executive performance must contain main effec
ts for person (competencies) and situation (economic-industrial) characteri
stics on both subsequent performance and performance trends, Future researc
h needs to examine which situational circumstances moderate relationships b
etween executive competencies and initial performance or subsequent perform
ance trends.