The strategic importance of CEO succession is indisputable, and the elements of effective succession planning have long been known. So why do many boards plan poorly for CEO succession when the cost of failure is so high?
When David Goldberg, CEO of Surveymonkey Com LLC, an online-survey company based in Palo Alto, California, died unexpectedly in May 2015, the company did not announce a new CEO until July. It considered 75 candidates, both internal and external, before appointing former Hewlett-Packard Co. and Microsoft Corp. executive Bill Veghte to the position. However, Veghte remained in the CEO role less than six months; in January 2016, he was replaced by Zander Lurie, who had been SurveyMonkey’s chairman.
Research finds three key reasons boards fail at CEO succession planning.
Source: How Boards Botch CEO Succession