How data-drivenassessment enables youto find the right CEO whodelivers lasting impact CONTENT INTRODUCTION03 THE RIGHT CEO WILL...03 DELIVER DIFFERENTIATEDFINANCIAL PERFORMANCE04 POWER TECHNOLOGICALTRANSFORMATION07 THERIGHTCEOWILL... CHOOSING THE RIGHT CEOISONE OF THE MOST IMPORTANTDECISIONS A BOARD CAN MAKE. Our research, covering over500 CEO transitions andorganizational outcomes of over100 publicly traded companies,shows that using a provenintegrated assessment processincreases the likelihood of findingthe best CEO. A strong leader shapesstrategy, culture, and long-term performance, impactingeverything from financialoutcomes to market positioning. Yet, selecting the right CEO oftenfeels uncertain. Korn Ferry’s CEOoutcomes research reveals theimpact of using a clear, data-driven approach to finding chiefexecutives who deliver resultsover time and drive sustainedtransformation. Korn Ferry CEO assessments helpcompanies find transformativeleaders who can double marketcap growth in the first four years.With our insights, boards canidentify CEOs who break the cycleof rapid CEO attrition, drive betterfinancial performance, and leadsuccessful transformation. ...DELIVER DIFFERENTIATEDFINANCIAL PERFORMANCE CEOs who scored high on Korn Ferryassessments more than doubled marketcap growthover the first four years. 18.5% vs. 14.7%HIGHER EBITDAMARGIN Compared to low-scoring CEOs,high-scorers achieved: MORE MARKETCAP GROWTH23% vs. 11% When the financial outcomes are adjusted for industry trends,the differences are even more revealing. Compared to peer companies in their industry, high-scoringCEOs achieved in four years after the leadership transition: HIGHER GROWTHIN MARKET CAP ...DELIVER DIFFERENTIATED FINANCIAL PERFORMANCE We also identified eight competenciesaligned withEnterprise Leadershipthat influence financial performance: STRATEGICLEADERSHIP RESULTSLEADERSHIP Global PerspectiveStrategic Vision Aligns ExecutionDrives Results PEOPLELEADERSHIP ECOSYSTEMLEADERSHIP Engages and InspiresCommunicates Effectively Builds NetworksPersuades We identifiedfive key leadership competenciesassociatedwith successful technological transformation: STRATEGIC THINKING It’s not just about technology—it’s aboutmaking it work for the bottom line. Balances immediate needswith long-term goals. CEOs with higher overall assessment scoresdrive ongoing technological transformationand achieved: Excels at networking and aligningBUILDS NETWORKS with others to drive transformation. COMMUNICATESEFFECTIVELY Shares vision and motivates teams,fostering trust and openness. Challenges the status quo, makesbold moves, and manages pushback.COURAGE ANNUALREVENUEGROWTH compared to3.2% for thosewith lower scores. 05 Creates a resilient and adaptableBEING RESILIENT FOUR-YEAR INDUSTRY-ADJUSTED TECHNOLOGICALTRANSFORMATION IMPACT AFTER CEO CHANGE CEOs who excel in the fivecompetencies (StrategicThinking,Builds Networks,Communicates Effectively,Courage, andBeingResilient) experienced aslight drop in tech adoptionacross the organization intheir first year, but afterthat, they sawsteadyimprovement. In contrast, CEOs whoscored lower in theseleadership competenciessaw a small decline in techadoption but struggled tomake progress afterward. The gap between the twogroupsgrew to over 6percentage pointsby thefourth year, a statisticallysignificant difference. ...STAY LONGER CEOs recommended by Korn Ferry based on our proprietaryassessment process were less likely to leave their companywithin three years—only 18% departed. For comparison,about 34% of CEOs in general leave within that time. This means using Korn Ferry’s assessmentsreduced CEOturnover by nearly half. It’s also worth noting that CEOs whowere assessed by Korn Ferry but not recommended hadturnover rates closer to the average. LEADERSHIP QUALITIES ASSOCIATED WITH LONGER CEO TENURE CEOs with low scoresinManaging Conflict,Balancing Stakeholders,andBuilding Networksare54% more likely(37% vs.24%)to leavewithin threeyears compared to thosewith high scores. This means that when anew CEO builds strongrelationships with keystakeholders, their supportand effective managementcan be key to long-termsuccess in the role. RISKS THAT COULD IMPACT TENURE AND PERFORMANCE LOWCOLLABORATION HIGHINDEPENDENCE LOWEMPATHY CEOs who are lesscollaborative arenearlytwice as likelyto leave within threeyears (34% vs. 16%). CEOs who are lessempathetic are94%more likelyto leavewithin three years(33% vs. 17%). CEOs who are moreindependent are48%more likelyto exitwithin three years(31% vs. 21%). IMPROVECEOSELECTIONOUTCOMES Boards can improve CEO selectionby adopting a more predictive,comprehensive evaluation process.Past experience alone isn’t enough—future success hinges on a CEO’sleadership qualities and ability totackle emerging challenges. Contact us to discover how KornFerry’s integrated assessments canhelp you find the right CEO to driveyour business to new heights. Korn Fe