Latest data from PwC shows that forced turnover across the globe costs shareholders $112 billion in total returns annually. A smooth leadership transition is one of the marks of a successful CEO and the most important duty of an effective Board, yet many companies get it wrong. Increasingly the best CEOs and Boards engage expert third parties to ensure objectivity and rigour in the process, often pointing Boards towards candidates they might otherwise miss or undervalue. Process needs to be guided by objective data, not gut instincts.
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The Cost to Shareholders of Picking the Wrong CEO's is a Stunning $112 Billion a Year - Hobson Leavy Executive Search