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INTERSEARCH SURVEY REVEALS STATUS OF CEO SUCCESSION PLANS IN COMPANIES AROUND THE WORLD Only 45 percent of executives from 34 countries around the world say their companies have a process for conducting CEO succession planning, according to a recent survey by InterSearch Worldwide, a leading global executive search organization operating in more than 45 countries, in Austria represented by Pendl & Piswanger. “Forward-thinking, responsible companies have robust processes for CEO succession planning, so it may astonish some readers that fewer than half of the companies represented in our survey actually do,” said InterSearch Chairman Frank Schelstraete. “Our advice to the 55 percent that do not: never let an emergency situation catch your company by surprise. Executives can resign or even pass away unexpectedly. Establishing a CEO succession plan should be a fundamental obligation of public and private companies and their boards – regardless of size and region.”

CEO Succession Planning 2013

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INTERSEARCH survey reveals status of CEO succession plans in companies around the world

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Page 1: CEO Succession Planning 2013

INTERSEARCH SURVEY REVEALS STATUS OF

CEO SUCCESSION PLANS IN COMPANIES AROUND THE WORLD

Only 45 percent of executives from 34 countries around the world say their companies have a process for

conducting CEO succession planning, according to a recent survey by InterSearch Worldwide, a leading

global executive search organization operating in more than 45 countries, in Austria represented by Pendl

& Piswanger.

“Forward-thinking, responsible companies have robust processes for CEO succession planning, so it may

astonish some readers that fewer than half of the companies represented in our survey actually do,” said

InterSearch Chairman Frank Schelstraete. “Our advice to the 55 percent that do not: never let an

emergency situation catch your company by surprise. Executives can resign or even pass away

unexpectedly. Establishing a CEO succession plan should be a fundamental obligation of public and private

companies and their boards – regardless of size and region.”

Page 2: CEO Succession Planning 2013

In terms of company size, the larger the company the more likely it was to have a CEO succession plan.

Among the largest companies in the survey (those with annual revenue of more than 400 million Euro), 73

percent have a CEO succession plan.

The data were more evenly split among medium-sized companies (those with annual revenue between 40-

400 million Euro) with 49 percent having such a plan.

And among small companies (those with annual revenue under 40 million Euro) only 17 percent had a CEO

succession plan.

Just 38 percent of private companies said they had a CEO succession plan, compared to 61 percent of

publicly traded companies that did.

Page 3: CEO Succession Planning 2013

By geographic region, 69 percent of companies had a CEO succession plan in place in EMEA, which includes

a wide range of countries from this diverse region.

In the Americas, where respondents came primarily from the United States, Canada, and a few South

American companies, 77 percent of companies had such a plan.

Page 4: CEO Succession Planning 2013

Nearly three-quarters (73 percent) of all respondents say their companies review and/or update their CEO

succession plan at least every three years, with a majority (56 percent) doing so once every year. Twenty-

seven percent do so only as needed.

Most companies generally think their CEO succession planning is satisfactory or better. Only a small

number think their succession planning is excellent (3 percent); the majority rate their plans as good (43

percent), or very good (33 percent). Nineteen percent rated their plans as fair (16 percent) or poor (3

percent).

Comments from survey respondents describing the effectiveness of their company’s CEO succession plan in

identifying qualified internal and external candidates included:

“My estimation is that we have a good process in place. Internal candidates are monitored and assessed

regularly [and] we have a programme to attract external talents.”

~Large private firm, Switzerland

“Both the succession plan as well as standardized nomination and handover processes are established. As

always, there are situations where the defined process is violated.”

~Large private firm, Austria

“The process [has been] clear and consistent over the years. The succession plan usually considers internal

candidates who have been growing in the organization [in] high responsibility roles.”

~Large private firm, Italy

Page 5: CEO Succession Planning 2013

“The updated and regularly reviewed database provides good number of qualified persons. External

candidates are not properly followed.”

~Large private firm, United States

InterSearch conducted the online survey of executives around the world from 1 December 2012 to 31

January 2013.

About InterSearch

InterSearch Worldwide is a global organization of executive search firms consistently ranked amongst the

largest retained executive search practices in the world. InterSearch is currently operating in more than 45

countries, staffed by local professionals selected for their experience and reputation in their own markets

and their ability to operate internationally. For additional information, please visit www.intersearch.org or

www.pendlpiswanger.at

Media contact: Peter Pendl, [email protected]