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INTERSEARCH survey reveals status of CEO succession plans in companies around the world
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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.”
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.
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.
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
“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]