New CEO impact on executive turnover

New US research on staff turnover at the top suggests a large proportion of senior executives involuntarily lose their jobs or resign after a new CEO arrives on the scene.

The study concluded that the promotion of a CEO internally resulted in executive turnover of 22 per cent. When a new chief executive was selected from outside the company, turnover increased to 33 per cent.

Looking just at "involuntary turnover", a new CEO promoted from within resulted in executive turnover of 12.5 per cent. With a new outside CEO, this figure jumped to 26 per cent.