“All I Am Saying Is Give CEOs a Chance”
In the May 23, 2011 issue of The Financial Times, Booz & Company Senior Partner Per-Ola Karlsson (Europe) said the Booz & Company finding that CEO turnover at the world’s largest 2,500 public companies slowed considerably in 2010 is indicative of a trend in which boards are opting for longer CEO tenure. “The risk of shifting someone who is performing at least averagely is too great,” says Karlsson of some boards. Released in May, Booz & Company’s 11th annual CEO Succession Study determined that CEO turnover in 2010 dropped below 12 percent for the first time since 2003. Furthermore, the research found that one of the main reasons of the sharpest year-over-year decline (19 percent) of CEO turnover in the past decade is the growing share of companies headquartered in emerging markets—now at more than one-quarter of the world’s top 2,500 companies. Booz & Company experts said that movement to emerging markets exerted significant influence on global succession rates due to their governance structures and fast growth rates.