Seventy-three percent of senior living CEOs whose organizations were represented in a recent survey by Ziegler could be retiring within the next 10 years, according to survey results. Sixty-five percent of the organizations in the survey don’t have formal, written succession plans in place for the CEO position, however.
The specialty investment bank polled almost 145 senior living chief financial officers and financial professionals, 62% of whom were from single-site organizations and 38% of whom worked at multi-site organizations.
Participants also reported on retirement and succession plans for the CFO and chief operating officer positions at their organizations.
Ziegler found that almost 61% of CFOs and almost 40% of COOs probably are going to retire within the next 10 years. Only 22% of the organizations represented have formal succession plans for C-suite executives outside of the CEO position, however, according to respondents.
Multi-site organizations were more likely than single-site organizations to have such plans (32% versus 19%, respectively), and those organizations that had succession plans were much more likely to have them for CFOs (91%) versus COOs (27%).
Results of a recent LeadingAge-CEMO Leadership Compensation Survey also indicated an urgent need for succession planning among senior living operators.
That research found that 40% of senior living CEOs, 20% of CFOs and 18% of COOs could be retiring within five years.