CEO Turnovers At Highest Rate

    0
    5

    The largest 2,500 public companies in the world revealed that the CEO turnover rate in 2012 was 15 per cent – the second-highest since 2000 and lower only than in 2005, says ‘Time for New CEOs: The 2012 Chief Executive Study’ by Booz & Company, a global consulting firm. Furthermore, companies are actively planning their CEO successions. The share of planned turnovers, at 72 per cent of all turnover events, is the highest in the 13-year history of the study, indicating that companies are seeking to build on the leadership stability most have enjoyed with the improved economy. During the economic crisis, boards took a reactive approach to CEO turnover and postponed CEO transitions. Gary L. Neilson, senior partner at Booz and co-author of the study, says “planned turnovers are at the highest rate ever, and insider CEOs make up the majority of new CEOs, indicating companies are taking a more thoughtful approach to ensure the right leaders are in place.”