CEO Transitions: Do It Right or Pay the Price

(From Business Wire) -- If CEO succession is not a hot topic in your boardroom, sooner or later, it will be. A change at the top can be driven by any number of events - some of which are anticipated, others that no one sees coming. In every case, the more prepared a company is, the easier and more successful the transition will be.

In January of this year, RHR International and Corporate Board Member surveyed 246 board members, predominantly from companies of $1 billion in revenue and above, to find out more about their CEO succession and transition experiences. More than 50% polled serve as outside directors, with the remainder primarily chairmen or CEOs. Most respondents indicated they had experienced three or more CEO transitions in their careers.

The survey results offer some insightful data, including how most companies approach the transition timeline, new CEO and board/management effectiveness ratings in several key areas, internal or external resources used, and exit strategies for the outgoing CEO.

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