The Hay Group recently revealed research about boards of directors - related to America's "Most Admired Companies (MACs)"
"Good boards understand that selecting the right CEO is probably the most important act that they will take," said Hay Group Vice President Ron Garonzik. "The consequences are too severe if they fail to do so, as recent turnover in CEO positions worldwide has proven."
It’s no surprise, then, that 91% of MACs agree that "We have a well defined plan to cover the emergency loss of the CEO that is discussed at least annually by the Board," v. 65% of the peer group. The MACs are also more likely (70% v. 57%) to "have developed a comprehensive profile for the CEO's successor that reflects our strategy and business model."
The study illustrates that Boards of Most Admired Companies are not only demanding a more significant role in the succession planning process, they are devoting much more time and effort to it than other Boards are.
Read the overview here.