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27/02/2017
Companies are increasingly making a deliberate choice to bring in outsider CEOs when succession planning, according to a report from PwC. In the four-year period 2012-15, the rate of outsider selection rose by 50%, with boards choosing outsiders in 22% of planned appointments.
Outsider CEOs were most likely to be hired in circumstances when the company concerned was low performing, where the chair did not have CEO experience in the same company and where the outgoing CEO was also an outsider. For the third year running, outsider CEOs delivered higher median total shareholder returns than insiders, the analysis suggests.