Companies Turn to an Unlikely Place for Their Next CEO

GE’s decision to oust its top boss and replace him with a director rattles some executives

As the news broke last Monday that General Electric Co. had pushed out its chief executive and elevated a relatively new board member to run the conglomerate, Yale University management professor Jeffrey Sonnenfeld’s phone lighted up.

The calls, texts and emails from the heads of Fortune 1000 companies, Mr. Sonnenfeld said, all essentially asked the same question: “Should I be worried about who we bring on boards now?”

Some...