Leadership

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Executive Summary

Data on CEO turnover indicate that during a downturn, boards tend to hold off terminating underperforming CEOs and other executives until recovery is in sight. This way the "Bad news" is associated with the former leaders, while new leaders can take advantage of the "Rising tide." Assuming this pattern holds true for the current recession, an increase in senior executive terminations lies ahead. Before any uptick in executive turnover occurs, it's a good time to evaluate the executive selection process and to come up with recommendations that will help businesses fine tune their leader selection process.

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