Succession planning remains weak point of US boards

One feature of the Spencer Stuart Board Index for 2011 may be self-interested, but that takes nothing away from its importance. The executive recruitment firm has noted that US boards are still not doing very well in succession planning. "In the wake of several recent high-profile CEO departures … succession is perhaps of even greater concern. In fact, triple the percentage of respondents named succession as a major issue confronting boards as did four years ago," it said. The 2011 survey results indicate that many boards have "not acted with a diligence reflecting the importance of a smooth transfer of power". Nearly a third of companies surveyed admitting that they have neither an emergency plan nor a long-term succession arrangements in place.

Source document: The Spencer Stuart US Board Index 2011 is a 68-page pdf file.