Why CEO Turnover is on the Rise
Turnover among Canadian CEOs and their American counterparts has been on the rise since 2010, and reached a new high of almost 15% in 2013. While renewal at the very top can indicate tighter corporate governance and oversight, and the replacement of the CEO often leads to increases in share value at least in the short term, there are significant costs involved. When CEOs are removed for poor performance, severance pay as well as normal recruitment costs come into play. It also represents a significant disruption for management, especially for the 50% of Canadian businesses with no formal CEO succession plan.
Read the article on the Financial Post website.
