Korn/Ferry Survey Reveals More Interest Than Action in CEO Succession Planning Among Top CompaniesBy Kornferry International, PRNE
Monday, December 20, 2010
NEW YORK, December 21, 2010 - 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
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 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 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.
1. Do you regard CEO succession planning as an important piece of overall corporate governance? Yes 98% No 2% 2. Does your company have a CEO succession plan in place? Yes 35% No 65% 3. Has your company put a succession plan in place in the last three years?* Yes 39% No, we had a succession plan in place earlier than three years ago 13% No 49% *Due to rounding, responses do not equal 100 percent. 4. Is CEO succession planning more important now than it has been in the past? Yes, it is more important 48% No, it has always been important 51% No, it is not important 1% 5. Have the unexpected departures of several recent high-profile CEOs heightened attention at your company on CEO succession planning? Yes 23% No, it has always been a priority 34% No 43%
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 the most recent Executive Survey.
About The Korn/Ferry Institute
The Korn/Ferry Institute was founded to serve as a premier global voice
on a range of talent management and leadership issues. The Institute
commissions, originates and publishes groundbreaking research utilizing
Korn/Ferry's unparalleled expertise in executive recruitment and talent
development combined with its preeminent behavioral research library. The
Institute is dedicated to improving the state of global human capital for
businesses of all sizes around the world.
About Korn/Ferry International
Korn/Ferry International, with a presence throughout the Americas, Asia
Pacific, Europe, the Middle East and Africa, is a premier global provider of
talent management solutions. Based in Los Angeles, the firm delivers an array
of solutions that help clients to attract, develop, retain and sustain their
talent. Visit www.kornferry.com for more information on the Korn/Ferry
International family of companies, and www.kornferryinstitute.com for thought
leadership, intellectual property and research.
Americas, Lindsey Koh, +1-310-556-8532, lindsey.koh at kornferry.com, or Asia Pacific, Carol Lo, +65-6231-6219, carol.lo at kornferry.com, or EMEA, Juerg-Herbert Baertschi, +44-20-7312-3178, juerg-herbert.baertschi at kornferry.com, all of Korn/Ferry International
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