Poor succession planning is wiping £2 billion a year from the stock market value of FTSE 350 companies - equivalent to 0.6 per cent of total UK annual company profits, according to a new research study sponsored by Investors in People (IIP).
The report, carried out for Investors in People by the Centre for Economics and Business Research (CEBR), analysed movements in share prices of companies experiencing at least one change in CEO between May 2002 and May 2005.
It found that companies with clear succession plans performed more than seven per cent better on the markets a week after their change than those that delayed appointing a replacement.
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