Research: Why CEOs Should Start with the New Year

Research: Why CEOs Should Start with the New Year

Careful succession planning is a key aspect of board governance. But it can be difficult to know how to set a new CEO up for success. New research suggests one thing boards can do is align their CEO’s start date with the beginning of the calendar year or a firm’s fiscal year. A study of 690 successions in the S&P 500 found that the firms whose CEOs’ start dates aligned saw stronger returns on assets compared to firms whose CEOs started at other …