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There is a 50 percent chance that new executives will leave the organization within the first 18 months. Here are four of the biggest reasons why --

Finding and hiring proven, talented executives who can lead your company into the future is a difficult task. These individuals' success or failure not only impacts revenue and profits, but a company's organizational morale and health. Consider:

  • A PwC study tracked the succession plans of the world’s largest 2,500 public companies from 2000 to 2014 and found that forced CEO turnover cost shareholders an average $1.8 billion.
  • When Barnes & Noble fired CEO Ronald Boire last August, after he spent less than a year on the job, the company's stock price plummeted 13 percent.  

Despite the understanding that boards, investors and private owners likely have of the consequences of poor executive-hiring decisions, the turnover for new executives is still occurring at a startling rate.

Authors: Keith Johnstone

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