CNN Business – A surprising number of companies don’t have a CEO succession plan. Here’s why.
October 25, 2019
By Jeanne Sahadi
Whether they quit, retire, get fired or die, all CEOs eventually leave. The billion-dollar question is: Who should replace them?
The boards of 20% of public companies and 32% of private ones can’t answer that question. That’s because they haven’t discussed long-term succession planning in the past 12 months, according to a survey conducted by the National Association of Corporate Directors.
A higher percentage haven’t even identified an interim CEO in case a CEO leaves abruptly.
But merely discussing a succession plan doesn’t really indicate whether a board is adequately prepared to replace an exiting CEO.