What CEO Exit Crisis?—Corporate Board Member

Farient Advisors continues its partnership with Corporate Board Member to explore one of the most pressing issues in corporate governance: CEO turnover and succession planning. The 2025 research initiative: What CEO Exit Crisis, now in its third year, reveals a striking paradox. While CEO turnover among S&P 500 companies hit record levels in 2024—and early signs suggest 2025 could surpass that pace—nearly three-quarters of directors surveyed believe the risk of a sudden CEO exit at their own company is low.

This perception gap underscores a critical governance blind spot. As Farient CEO and Founder Robin Ferracone notes, “Sudden departures can lead to waves of collateral impact, such as the departure of other C-Suite executives, creating instability beyond the initial vacancy. This ripple effect also extends to succession candidates, especially when internal candidates are passed over for external hires.”

The costs of being unprepared can be steep. According to Ferracone, “Our research shows that externally hired CEOs are paid approximately 30 percent more on average than the outgoing CEOs. By comparison, internally promoted CEOs are typically paid some 20 percent less.” That difference—combined with the loss of institutional knowledge and disruption to strategic initiatives—makes robust succession planning not just good governance but sound financial strategy.

The survey findings reveal that while most boards update their succession plans annually, nearly half do not forecast the actual risk of turnover. That lack of clarity can leave boards vulnerable to the next unexpected pivot, whether driven by market volatility, cultural shifts, or technological disruption such as AI.

For directors and executives, the takeaway is clear: preparedness matters. Farient’s ongoing collaboration with Corporate Board Member offers boards actionable insights into how talent strategy, succession planning, executive compensation, and governance intersect—and why now more than ever, getting it right is mission-critical.

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About Robin Ferracone

Founder and CEO, Farient Advisors/GECN Group

New York: (646) 626-6931
Los Angeles: (626) 799-2700
robin.ferracone@farient.com

Robin Ferracone is founder and Chief Executive Officer of Farient Advisors LLC, an executive compensation, performance, and corporate governance advisory firm. Farient helps clients make performance-enhancing and defensible decisions in the best interests of their shareholders and other stakeholders. Robin provides these advisory services to public and private companies.

From 2005 to 2007, Robin was President of the Human Capital business of Mercer, a business that included talent and compensation consulting, software, and data services globally. Prior to that, Robin was Chairman of the U.S. West Region for Mercer’s parent company, Marsh & McLennan Companies; market leader and Worldwide Partner at Mercer; and President and Chairman of SCA Consulting, a firm she co-founded and sold to Mercer.

With over 30 years of consulting experience, Robin advises clients in the areas of business and talent strategies, executive compensation, organization, value management, and performance measurement. She is the author of the book entitled, “Fair Pay Fair Play: Aligning Executive Performance and Pay.” Her work focuses on providing high-impact decision-making support and organizational solutions based on strategic and market insights. In addition, Robin has authored numerous articles, is a regular contributor to Forbes.com and Directorship Magazine, and often is quoted in national publications. She is a frequent speaker for prominent organizations, such as the Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, NACD, and The Conference Board.

Robin is currently on the Board of Directors of The Woodlands Financial Group (TWFG) where she serves as chair of the Compensation Committee. She also serves on the Board of WildAid, a global non-profit dedicated to protecting endangered species and reducing climate impacts. Robin is a trustee emeritus of Duke University. In addition, Robin is a member of 50/50 Women on Boards, the National Association of Corporate Directors, Women Corporate Directors, YPO Gold, and the Trusteeship. She formerly served on the Board of Trupanion, Inc., where she chaired the Compensation Committee. Of special significance, Robin has been named to the NACD Directorship 100, a list of the most influential people in corporate governance and the boardroom, an unprecedented 14 times. And, in 2014, she was selected as one of EY’s Entrepreneurial Winning Women, a competition that annually recognizes female entrepreneurs.

Robin received an MBA from the Harvard Business School, where she graduated with high distinction, and a BA summa cum laude in management science and economics from Duke University, where she was elected to Phi Beta Kappa.

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