The answer is false. When a CEO is fired for performance reasons, it is more likely that the board will recruit an outsider as a replacement. This is because the outgoing CEO has set the existing strategy, which has not been working. He has put the existing management team in place, which has developed objectives, processes, and procedures to achieve the CEO's strategies. Unless a specific, addressable problem is apparent, the board will most likely see a need for a fresh vision and an externally sourced leader.