CEO departures go unplanned

A new report by SHL, the psychometric testing company, says that most large businesses do not have a succession plan in place for their chief executive, despite the damage it can cause to a company’s share price when the boss leaves suddenly.

The study, highlighted in the Daily Telegraph, showed only 32 % of employers surveyed said they had a Plan B lined up, should their chief executive suddenly quit or be forced to take a leave of medical absence.

One in five companies said unexpected leadership changes had caused growth to slow due to a lack of direction, while a third said it had dented employee morale.

Only a third of companies have formal succession plans for chief executives despite a similar number saying it can take six months or more to replace their chief executives, according to the analysis by SHL.

Almost half of the 258 large companies surveyed said they had experienced an unexpected change in leadership in the last 12 months with some stating it had caused a detrimental impact on the business.

Only a third of companies have formal succession plans for chief executives despite a similar number saying it can take six months or more to replace their chief executives, according to the analysis by SHL.

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