Most Companies Have No CEO Succession Plan

December 21, 2010 – A 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, according to the Korn/Ferry Executive Survey. Nearly all companies surveyed – 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. The survey also revealed that 43 percent of respondents have not increased their attention to succession planning in response to recent scrutiny and 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 the Korn/Ferry board & CEO services practice. “In today's environment, succession planning should be a part of any company's standard approach to governance.” Korn/Ferry International, based in Los Angeles and with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa, is a global provider of talent management solutions.