"These preoccupations in the matter of international successions
are justified both by the fact that the Regulation (EU) no.
The vast majority (84%) of these cases had planned CEO succession
events from outside the company.
When you quantify the cost of turnovers, particularly forced ones, you get a strong sense of the importance and payoff involved in getting CEO succession
Dubai -- Companies in the Middle East have been getting better at CEO succession
planning over the past few years amid survey reports showing that across the globe a CEO turnover reduces median total shareholder return to -3.5 per cent in the year after the turnover takes place.
At topic was the 2015 priority of preparing succession
candidates for a wide range of their top leadership roles, and the challenge of doing so when most processes and tools for succession
and development are now 20 or 30 years old.
On the other hand, with respect to rapid growth of global market and competitive scope and lack of expert and experienced human resources, the need of organizations to succession
plan is undeniable.
General counsel and attorneys who work with boards of directors have key responsibilities in CEO succession
. Legal rights of the company and the outgoing CEO need to be addressed, as do the rights of the new CEO and other candidates.
The scope of the succession
problem in the independent advisory industry is well-documented.
There appears to be a link between inside promotion to the CEO position and the succession
planning process--31.6 percent of announcements that mention the board's role in the succession
planning process involve an insider appointment as incoming CEO, whereas no successions
that involve an outside hire reference succession
Consistent with the second prediction, I find that marathon successions
are more likely to occur following forced CEO turnovers, where internal candidates are more likely to depart with the incumbent CEO (Fee and Hadlock, 2004) and, for firms that operate in heterogeneous industries, where search costs for external candidates can be high (Parrino, 1997).
The regulation "on jurisdiction, applicable law, recognition and enforcement of decisions and authentic instruments in matters of succession
" provides for a relaxing of legal formalities in case of the death of a person with assets in an EU country that is not his or her own.