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It is the highest level ever recorded by The Conference Board in its 17 years review of CEO succession practices.
In fact, however, the succession practices of modern political systems appear to be of four main types: (1) heredity, (2) constitutional prescription, (3) election, and (4) force.
The report, CEO Succession Practices: 2017 Edition, annually documents and analyzes succession events of chief executives of S&P 500 companies.
The results were striking: There was not one meaningful measure from missing skill sets to the effectiveness of succession practices to creating more diverse boards and workplaces on which FOB boards outperformed non-FOB boards.
Given the broad range of average tenure in different regions, in 2014, SSgA is evaluating board refreshment and director succession practices at its investee companies through a new director tenure policy.
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.
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Dionne Hosten is a Principal at ghSMART and co-leads the firm's CEO Succession Practice.
Reshmi Paul, Ph.D., is a partner and leads the CEO Succession Practice at ghSMART, a leadership advisory firm that helps CEOs, boards, and investors maximize value creation through their leaders' performance.
These observations point to a critical area where succession planning practices can and should be improved: The CEO and the board need to get and stay on the same page when it comes to the true readiness of internal succession candidates and making sure of their preparation.
While my original piece comparing Henry VIII and Suleiman the Magnificent's succession planning practices was mostly an excuse to research harems, there's a lot of wisdom in Suleiman's approach.
The Ghosn saga thus underscores the value of board control in independent directors (not required of Nissan), and an effective CEO succession protocol a practice reportedly frustrated by Mr. Ghosn.
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