Companies undergoing forced CEO turnovers, rather than planned successions, have foregone huge amounts of money, according to a recent study. Analysis in the newly released 15th annual study of CEOs, Governance, and Success by Strategy&, a part of the PwC network, examines CEO turnover as well as incoming and outgoing CEOs at the world's 2,500 largest public companies. It found that in terms of shareholder value "simply having a CEO turnover reduces median total shareholder return to -3.5 percent in the year after the turnover takes place, based on the last three years of data (shareholder return is measured relative to the indices that companies trade on).
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