CEO Succession Practices
2014 EDITION
RESEARCH REPORT R-1544-14-RR
by Jason D. Schloetzer, Matteo Tonello, and Melissa Aguilar
Contents
5 Using This Report
7 Key Findings
11 Part I: CEO Succession Trends (2000–2013)
12
CEO Succession Rate
13
13
14
By company performance
By departing CEO age
By industry
15
Characteristics of Departing CEOs
15 Age
16 Tenure
16 Disciplinary and nondisciplinary departures
17
Characteristics of Incoming CEOs
17 Age
17 Inside promotions and outside hires
18 Tenure-in-company of insider appointments
18 Professional qualifications and skills
19 Joint election as board chairman
20 Part II: CEO Succession Practices (2013)
21
Board Practices in CEO Succession Planning
Responsibility for CEO performance review
Frequency of CEO performance review
Responsibility for CEO succession planning
Frequency of CEO succession plan review
CEO auditioning practice
Board retention of departing CEO
Board access to employees without CEO approval
Mandatory CEO retirement policy
Succession planning disclosure
22
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30
Communication Practices in CEO Succession
Responsibility for succession announcement
Succession effective date
Stated reason for CEO departure
Stated role of the board in CEO succession planning
Director and management changes in conjunction with CEO succession
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36 Part III: Notable Cases of CEO Succession (201 2