It pays to promote CEO from within. This is obvious. any single promotion creates a chain of vacancies and opportunities to many in an organization. This will lead to more efficiency and employee loyalty. This is discussed at lenght in the link:

http://in.finance.yahoo.com/news/It-pays-promote-CEOs-says-pti-1396809274.html

G. K. Ajmani Tax consultant
http://gkajmani-mystraythoughts.blogspot.com/

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Here again there are successful examples of both kinds. A CEO appointed from within can be a failure too!
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