Strategic HR Succession planning
Game
of thrones
With greater scrutiny on how organisations are
governed and led, now is the time for HR to take
charge on succession planning, hears SUZY BASHFORD
US S news website Observer described 2019 as the ‘year of
disappearing CEOs’ in an article that went on to list a
raft of top executives who resigned abruptly or were ousted
in disgrace.
The CEO position seems to be more insecure than ever.
Research firm Challenger, Gray and Christmas found that
nearly 1,500 CEOs of US-based companies/subsidiaries
exited their posts between January and November in 2019,
marking a jump of 12% on the same period the preceding
year (a record increase since the firm started tracking this
stat back in 2002).
“A CEO can go from being invincible to shockingly
dispensable very quickly,” says Keith Robson, an interim
people officer who has held senior HR roles at M&G
Investments, NATS, Rolls-Royce and Aviva. “Some would
argue that’s why they get the big bucks – because, on average,
the tenure is 3.5 years then they’re out.”
This volatility is set to continue, according to experts like
Paul Aldrich, co-author of Workforce.thought than ever.”
with an actress.
plummeted by $4 billion.
Building An Outstanding
. He says: “Stakeholder pressure through social
movements, 24/7 public judgement through social media,
and regulation will all combine to intensify the pressure on
CEOs. CEO development and ongoing support require more
‘Shamed’ CEOs of 2019 include Expedia Group’s Mark
Okerstrom who was sacked by the board for underperformance,
Away co-founder Stephanie Korey who was
accused of creating a toxic workplace culture, and Warner
Bros. chairman and CEO Kevin Tsujihara who resigned amid
a flurry of accusations about an inappropriate relationship
When a CEO exits a company, particularly with a cloud
over their head, it can have a phenomenally damaging effect
on share price. When McDonald’s fired its chief executive
Steve Easterbrook for breaking its personal conduct policy
by having a relationship with a colleague its stock price
Similarly, unicorn tech start-ups like WeWork and Juul
suffered seismic falls in their IPO valuations that were
20 HR February 2020