CEO turnover declines despite economic storm
Building a better leadership bench
Given the unprecedented conditions in the global economy, the challenge of developing leadership is urgent, particularly for the next generation of CEOs. “Leadership development works best when led by a company’s leaders,” commented Richard Rawlinson. “Boards must be engaged in the process and not leave succession planning in the HR department’s hands.”
This study identified the world’s 2,500 largest public companies, defined by their market capitalisations (from Bloomberg) on 1 January 2008. In the UK, an additional list of the 300 largest public companies was compiled and includes 123 companies that are part of the global list. To identify companies among the top 2,500 that had experienced a chief executive succession event, Booz & Company cross-checked data across a wide variety of printed and electronic sources, including Factiva and Hoover’s. Additionally, the company conducted electronic searches for announcements of retirements or new appointments of chief executives, presidents, managing directors, and chairmen. For a listing of companies that had been acquired or merged in 2008, Booz & Company used Bloomberg. Booz & Company also conducted supplemental research for regional CEO changes not identified by other sources. The full methodology is contained within the report.