Half of company boards say CEO succession planning started too late

A Korn Ferry survey found that half of company boards thought their latest CEO succession planning began too late.

The study interviewed 250 board members and CEOs about leadership transitions and how companies prepare for risks.

Six in ten boards said succession planning works best as a continuous process, but only 17% review plans every quarter.

Nearly seven in ten boards said they had not gathered enough information during their latest CEO succession, and only 15% of board members thought they had prepared a new CEO very well.

Half of the boards said they chose a conservative successor rather than someone who could transform the company.

CEO changes are common: 11% of large and medium-sized companies covered by the S&P Global classification changed CEOs last year, compared with 12% of companies on Spain’s stock market.

Most boards and CEOs said leadership transitions had strengthened their organization’s ability to manage risks.