CEO Turnover

CEO Turnover is becoming an increasingly challenging and complex reality
for many corporations and public sector organizations.

STRIVE! A leading Canadian Board Governance Company has identified eight (8) major reasons why this phenomenon is occurring so frequently right across Canada.

1. The roles of the Board and the CEO are not clearly defined nor agreed

2. CEO burnout caused by excessive energy required to manage a dysfunctional Board

3. Poor hiring practices - Boards have no clear criteria for selection, are not skilled in personnel appraisal, and have limited training in interviewing, selection and reference acquisition techniques.

4. The Board spends too much time in operations (even when the roles of Board and staff have been defined.) This undermines management authority, and end runs communication and decision-making processes.

5. The Board fails to provide effective performance feedback to the CEO, and CEO feels under - appreciated or unrecognised for his/her contribution.

6. Resulting power struggles between CEO and Board cloud the corporate vision, reduce strategic energy and undermine productivity.

7. The Board performs poorly, with insufficient accountability for decision-making, poor attendance and lack of preparation on critical issues, being the three main symptoms of this.

8. Board conflict – members are unable to resolve conflicts or to present a united public front on all decisions.

As a result, STRIVE! knows of several organizations where companies are doing their third or fourth CEO search in 3 years.

The consequences of this situation compound negatively and rapidly:

When there is a high level of turn over the access to quality applicants goes down.

Significant staff disorientation, dissatisfaction and loss of morale, which leads to downturns in productivity and performance.

Costs of both severance and acquisition (reward) packages increase exponentially.

The credibility of the organization decreases, reputation and image suffer, stock drops or stagnates

Shareholders, stakeholder/members, funders, credit agencies and clients all lose confidence

The corporate culture becomes unhealthy.

Talk to STRIVE! today for the latest trends in Board-CEO relationships across Canada

Phone 519.766.9033
Email
Corporate Canada Needs Healthy Boards