CEO succession planning is still not universal.25 percent of the KFMC companies did not specify in those public documents that they had any succession plan in place. The other 75 percent explicitly state that they maintain or review a succession plan.
Many companies are unprepared for an emergency leadership transition.
Only 17 percent of the companies specified that they had a plan or person at the ready in the event of a sudden CEO departure, including 4 percent that have had a stated plan for an interim CEO, 7 percent with a list of potential successors, and 6 percent that put written procedures in place.
Succession plans are getting deeper.
57 percent of companies are planning for who will move into all sorts of leadership roles, not just the CEO job, including 46 percent who are looking at all senior managers and 11 percent who are looking at all key corporate officers.
Director turnover stays very low.
Only 90 board seats changed hands in FY2011, just 7.6 percent of available directorships, creating concern for how quickly boards can add more diversity to their ranks or adapt to rapidly changing business shifts. At that rate, it would take 13 years for boards to completely refresh. The tenure of a retiring or departing director in FY2011 was 11.1 years on average.
Individuals serving fewer boards.
Most directors serving on the boards of these 100 large companies are only on one or two boards. But in FY2010 about 13 percent of directors served on four or more boards. For FY2011, that number dropped to 5 percent.
CEO experience harder to secure for boards.
Public company CEOs, past and present, remain highly desirable, but are harder to find as companies limit their own CEO's availability for outside board service. Among sitting directors, 43 percent had CEO experience, but among those joining in FY2011, just 35 percent did.
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