CEO succession planning low on boards' priority

Succession planning is 4th in priority for boards, lower than strategic planning, regulatory compliance and sustainability, finds a survey

For most companies, succession planning only begins when a chief executive officer (CEO) departs, finds a study by Institutional Investor Advisory Services (IiAS). 

Succession planning is fourth in priority for boards, lower than strategic planning, regulatory compliance and sustainability, finds the survey of 30 listed companies and 37 respondents, mostly CEOs, executive or independent directors. Around 27 per cent of respondents said they discuss succession planning only in the event of a CEO’s departure. Further, 27 per cent said their boards discussed CEO succession planning once a year.

To tide over a CEO departure, 64 per cent said they preferred internal candidates