Wednesday, May 2, 2007
Increasingly, boards are hiring new CEOs from within the corporate ranks, instead of looking outside. In 2005 40% of CEOs hired by S&P 500 companies were from the outside, in 2006 the percentage dropped to 15%, and in the first quarter 2007 only 1 of 8 positions was filled by an outsider. Why? Less cost, less surprise, and increasingly boards consider succession planning part of their responsibility. See WSJ, Directors Now Prefer Insiders In Search for CEOs.