CEO succession planning is one of the thorniest and most important issues a company faces, and it comes with many challenges.
The wrong choice can send a company into a tailspin, no matter how good the rest of the executive ranks are. The CEO sets the company’s tone, good or bad, and that leadership has a bearing on every facet of operations...
And if the CEO is not a fit for reasons that include friction, competency, market missteps or ethical reasons “make a move as quickly as possible to replace that person to limit the damage,” said Matt Mooney, partner at ON Partners, an executive search firm.
There is a surprisingly high amount of times this happens, and the company should steel itself for litigation.
At small- and midcap companies new CEOs don’t work out about one-third of the time, Mooney said. At large companies it happens about 10% of the time, with these enterprises tending to be more established and with stronger professional boards.
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