According to this article from Management-Issues, around half the boards of public, private and nonprofit corporations consider their efforts around CEO succession to be less-than effective and a similar proportion admit they have no succession plan in place.
The findings emerged from a series of surveys published by The National Association of Corporate Director's (NACD) research arm, The Center for Board Leadership, in collaboration with Mercer Delta Consulting.
- A quarter of organizations acknowledge that their boards fall into "below acceptable" levels of CEO succession planning, despite directors identifying succession as among the leading concerns facing their companies.
- For directors on public boards, CEO succession is the second-most critical board concern, up from last year's third, while for directors on private boards, it ranks as the third-most important issue, up from fifth last year.
- Strategic planning and corporate performance were other issues high on the agenda for boards in 2006.