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Succession Planning and Management: A Guide to Organizational Systems and Practices by David Berke

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CEO Succession

CEO succession was the original focus of succession planning (Kesner & Sebora, 1994). It continues to be a topic of great interest, especially given the rise of the celebrity CEO in the 1990s, the economic downturn and corporate scandals that followed, and a significant increase in turnover at the top. Ocasio (1994) points out that one of the effects of shareholder activism is a decrease in the ability of CEOs to institutionalize their power and lengthen their tenure. The author predicts that executive control will be increasingly subject to shifting political coalitions and ongoing political struggles as poor performance highlights the ineffectiveness of a CEO’s strategies—one of the primary reasons for selecting a successor from ...

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