As an observer of CEO departures for many years now, the new 2005 Booz Allen Hamilton study on CEO succession provides several illluminating trends. The survey is now in its fifth year and always provides new insights and patterns:
* More than one in seven of the world’s largest companies changed leadership in 2005
* Four times as many of the world’s top CEOs were forced out in 2005 vs 1995
* Outsider CEOs do not perform as well as insider CEOs (they start out well and lose their sizzle by year five)
As the report’s authors state: “Chief executives who can produce results are in greater demand than ever before.” That partially explains why boards are willing to give CEOs high compensation packages to attract and keep them from jumping to another company (apparently a new trend too).
The talent wars are back.