A study by Stanford, the Institute of Executive Development, and The Conference Board reveals a critical stumbling block in the succession process. Internal candidates are the most likely to succeed a CEO, but new research reveals a critical stumbling block in the succession process: how well boards of directors know senior executives one level below the CEO and a lack of board involvement in talent development. In this report we detail the results of our survey of more than 150 corporate directors of public companies in North America. The study results appear in the latest edition of Director Notesopen in new window published by The Conference Board. Additional analysis of survey data and statistics regarding CEO turnover events at S&P 500 companies will be included in the 2014 edition of The Conference Board’s CEO Succession Practices, slated for release in early April.
Copyright held by David F. Larcker, Scott Saslow, and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
