Succession planning can help eliminate the bumps in the road that often accompany executive transitions.
An exclusive Retail Leader survey indicates about 65 percent of companies have a succession plan, with most developed by C-level executives and the board of directors. About one-third of companies say they involved other employees and stakeholders in the succession-planning process.
About three out of four current CEOs were promoted from within or were the company's founder, while 16 percent previously were CEO or CFO of another company and 5 percent held executive positions at other firms. Nearly one in three CEOs have held the position for more than 13 years, while 53 percent have been CEO for five years or more. But about 18 percent are in their first year and about 34 percent have been CEO for no more than three years, indicating the importance of succession planning.