Corporate Governance » Fewer CEOs Fired In 2013

Fewer CEOs Fired In 2013

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April 28, 2014

Last year the percentage of companies that fired their CEOs was the lowest since 2010. Only 23.8 percent of all CEO “turnover events” in 2013 were dismissals, according to The Conference Board’s 2014 “CEO Succession Practices” report, which examines CEO turnover at S&P 500 companies. Meanwhile, the  average tenure of a departing CEO has declined, dropping from about 10 years in 2000 to just over eight years in 2012. The year 2013 – in which the average departing CEO had served 9.7 years – was an outlier, likely due to a lower rate of dismissals, as well as delayed CEO retirements due to economic conditions. Among other notable findings: The number of companies that elected a new CEO to be chairman of the board was down significantly in 2013, to just 9.5 percent compared to 19.2 percent in 2011.

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