Inquiries about succession plans
Respondents were asked to describe the frequency with which investors have asked questions about their company’s succession plans over the previous 12 months, using a scale of one to five where one is ‘never’ and five is ‘always’. Overall, the average score is 1.8. Respondents in Europe (2.1) on average report more frequent questioning about their succession plans than do those in North America (1.7).
Respondents at mega-cap companies (2.1) on average report the most frequent inquiries, above those at mid-caps (1.8) and large-cap firms (1.7), though only just above those at small caps (2.0).
Overall, around a third (32 percent) of respondents say they are seeing a slight or large increase in the frequency with which investors are asking about their company’s succession plans compared with three years ago. Very few (4 percent) report a decrease in the frequency of such questions.
Thirty-nine percent of those in Europe say they have been fielding more frequent questions about their succession plans over that period, while 27 percent of those in North America say the same.
The increased frequency of questions is more pronounced for smaller issuers: 39 percent of respondents at small-cap firms say their investors are asking questions more frequently than three years ago, compared with 32 percent of those at mid-caps, and 26 percent of those at large-cap firms and mega-caps.
Respondents were asked what investors ask about their companies’ succession plans. Aside from inquiries as to whether the company has a plan, their responses include:
