A Korn/Ferry Executive Survey released today reveals that the majority of global companies do not have a CEO succession plan in place, even though they regard CEO succession as an important element of overall corporate governance. The Korn/Ferry Institute surveyed a global sample of corporate leaders.
According to the Korn/Ferry Executive Survey, nearly all companies – 98 percent – regard CEO succession planning as an important piece of the overall corporate governance process. Yet, only 35 percent of respondents are prepared for either the unexpected or planned departure of their CEO.
Despite the recent increase of unexpected departures of several high profile CEOs, the trend has not fully opened the eyes of corporate executives. The Korn/Ferry Executive Survey reveals that 43 percent of respondents have not increased their attention to succession planning in response to recent headlines focused on hasty CEO departures. Nearly half of respondents, 49 percent, have not put a succession plan in place in the last three years.
"Given the number of abrupt, high profile executive departures this year, it's surprising that more companies are not acting with greater urgency to put a CEO succession plan in place," said Joe Griesedieck, vice chairman and managing director of Korn/Ferry Board & CEO Services Practice. "In today's environment, succession planning should be a part of any company's standard approach to governance."
Recent changes in federal regulation concerning CEO succession disclosure rules have changed the outlook of organizations considering the importance of CEO succession planning. Of those surveyed, 48 percent reveal that CEO succession planning is more important now than it has been in the past, while 51 percent have not changed their attitude toward CEO succession and believe it has always been important.
The Executive Survey is based on a global survey of executives registered within the firm's online Executive Center, ekornferry.com. Respondents from 60 countries, representing a wide spectrum of industries and functional areas, participated in it.
