Jun 5, 2006

CEO turnover

Global CEO turnover reached a record peak in 2005, write Chuck Lucier, Paul Kocourek and Rolf W. Habbel in strategy + business. According to Booz Allen Hamilton’s annual study of CEO churn, over 1 in 7 of the world’s largest 2,500 public companies changed leaders in 2005, versus just 1 in 11 a decade previously. Outright dismissals of top CEOs also increased fourfold compared to 1995 fuelled by mergers and acquisitions, note the authors. [Hat Tip: Egon Zehnder Executive News Service]

Phew ! 1 in 7 ! That's gotta be the toughest jobs. But not here in India though. Boards here continue to be rubber stamps and promoters and their family members continue to be in the CEO's position no matter how much value they destroy !