Merger-related CEO changes provide substantial boost to stock prices. Worldwide, nearly one in three departing CEOs left office involuntarily.
Global CEO departures have leveled off at a high plateau, and less than half of CEOs leaving office in 2006 departed under normal circumstances, according to the sixth annual survey of CEO turnover at the world’s 2,500 largest publicly traded corporations released today by management consulting firm Booz Allen Hamilton. The study found that corporate boards are quicker than ever to replace underperforming CEOs, as they focus more on grooming in-house leaders and turn to outsider and interim CEOs less often as outsider results continue to disappoint.
For the last six years, Booz Allen’s study of CEO turnover has charted the emergence of a more demanding environment for CEOs and boards by examining the linkages between CEO tenure and corporate performance, comparing CEO turnover in major regions and industries.
The firm’s study, “CEO Succession 2006: The Era of the Inclusive Leader,” is being published in the Summer 2007 issue of strategy+business, Booz Allen’s quarterly thought leadership magazine, on newsstands June 1.
See full Press Release.
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