The dismissal rate of CEOs in the S&P 500 due to disciplinary actions has increased in recent years, while 25 percent of boards of directors facing a chief executive succession have opted for an outside hire, according to a new report by The Conference Board.
The 2011 CEO Succession Report, a new addition to The Conference Board's research portfolio, will be released early next month. Written by Matteo Tonello, director of corporate leadership research for The Conference Board, and Jason Schloetzer, assistant professor at the McDonough School of Business at Georgetown University, the 50-page report documents and analyzes succession events regarding the chief executive officer in S&P 500 companies in the 2009-2010 period and includes, where appropriate, historical comparisons with data from the last decade. It is being made possible by the support of CTPartners.
As part of a promotion for the new report, The Conference Board is making it available, free of charge, to those members of the general counsel or corporate secretary office or corporate governance specialists at a U.S. public company who participate in our 2011 Board Practices Survey. The survey is co-sponsored by The Conference Board, NASDAQ OMX and NYSE Euronext. Findings will be described in the new edition of The Directors’ Compensation and Board Practices Report, scheduled to be released in the fall and also will be mailed to survey participants.
To participate in the survey and receive your complimentary copy of the 2011 CEO Succession Report, click on the following link before June 30:
The 2011 Board Practices Survey
“In designing the first edition of what will become a periodic report, we spent a great deal of time reviewing existing sources of information to ensure that our product provides a comprehensive set of benchmarks on the subject,” Tonello said.
“One of the most important strategic risks that a corporation must manage is the succession of its chief executive officer,” adds Schloetzer. “This is true today, more than ever, due to the recent challenges posed by a variety of economic factors. To make an informed decision, the board should understand not only the technical knowledge and experience necessary to effectively lead the company into the future, but also the context and practices of the succession planning process.”
For a summary of the key findings in the Succession Report, click here.
Gary Larkin is a research associate in the corporate leadership department at The Conference Board in New York. His research focuses on corporate governance, including succession planning, board compo…