Sharp increase in UK CEO turnover

Chief executive turnover in the UK last year saw a sharp increase to 14.3%, while in contrast succession rates across the globe fell to 11.6%, according to Booz & Company’s 11th annual CEO Succ

Chief executive turnover in the UK last year saw a sharp increase to 14.3%, while in contrast succession rates across the globe fell to 11.6%, according to Booz & Company’s 11th annual CEO Succession Study.

Overall, the rate of CEOs forced from office fell to 2.2% globally in 2010, declining 3.6% from 2009 and representing the lowest rate of chief executive terminations since 2001.

Planned as opposed to forced or merger-driven departures declined by 1.4% to 7.7%. Last year, overall succession rates outside Europe, which also include merger-driven departures, held stable in North America (11.1%) and increased in Japan (18.9%), while falling in the rest of Asia (also 10.2%).

Booz & Company’s study of worldwide CEO succession patterns examines the degree, nature and geographic distribution of CEO changes among the world’s 2,500 largest public companies.

This year’s report, ‘CEO Succession 2010: The Four Types of CEOs’, focuses on the role of the CEO and core senior management team, examining how they engage with the businesses they lead and the resulting effect on tenure and turnover.

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