When it comes to replacing executives who have departed - an activity communications executives should be integrated into as it relates to succession planning - a Hay Group study of Fortune magazine's list of America's Most Admired Companies found that 77% of these organizations' boards show a preference for internal candidates. Additional findings show that the Most Admired Companies are, among other things:
- 19% more likely than the peer group to provide expertise to the CEO and management on human capital issues;
- 21% more likely to have a well-defined succession plan in place to prepare for the long-term replacement of the CEO and other senior executives;
- 23% more likely to evaluate CEOs on success in developing human capital and evaluating financial outcomes and strategy implementation;
- 21% more likely to have well-defined plans to cover the emergency loss of the CEO and other top executives, and to discuss the aforementioned plans at least annually;
- 22% more likely to have a human capital strategy that has been reviewed and approved by the board;
- 23% more likely to have developed a comprehensive profile for the CEO's successor that reflects the company's strategy and business model; and,
- 13% more likely to have an effective succession plan for senior executive positions.