Family members who are CEOs of their family business remain in the role longer and are rarely forced out. That’s one finding in a newly released research brief from the Koch Center for Family Business, “Family CEOs, Turnover, and Firm Performance.”
The brief details the following findings regarding the turnover and performance of CEOs in family businesses:
- CEO performance has a signicant impact on the likelihood of forced turnover.
- Family CEO successors remain CEO for longer and are almost never forced out.
- Insiders (both family and non-family) tend to be appointed in more profitable companies than outsiders. Insider CEOs appear to outperform outsiders as a result.
- Family insiders are younger and have more experience in the firm at time of appointment than unrelated insiders.
- Founders are more likely to be forcibly removed from office by year two than any other CEO type.
Find more research and resources on family business and succession at the Koch Center site.