Board size variation and rates of succession in the corporate presidency

Within the setting of 54 industrial corporations, the higher the variation in the membership size of the board of directors, the more rapid the rate of replacement of the president. Variations in board size are developed from a coefficient of volatility identifying yearly changes from 1947 to 1977. Further analysis of the data suggests that for relatively successful companies a significantly negative relationship exists between board size variation and rates of succession, whereas a significantly positive relationship exists for relatively unsuccessful companies. These results have implications for succession planning in the corporate presidency.