Only 35 Percent of Companies Have a Succession Plan and Apple Is One of Them
Apple may not want to disclose its CEO succession plan, but at least it has one. Which is more than you can say for quite a few other companies.
According to a global survey of 1,300 companies by Korn/Ferry, though 98 percent of companies believe a CEO succession plan to be important, only 35 percent currently have one in place. And 49 percent haven’t had one in place for the last three years.
That’s something shareholders calling for Apple to disclose its succession plan annually might want to keep in mind as they prepare for the company’s annual meeting later this month. On this issue, Apple is actually a leader in corporate governance. And it does have a good rationale for keeping its succession plan private:
- A written succession plan would give Apple’s rivals unfair advantage by publicizing its objectives and plans.
- Identifying potential successors to Steve Jobs would invite other companies to recruit those people away from Apple.
Sound reasons and ones that seem to outweigh the main reason for making it public: Making nervous shareholders less nervous.