It seem to me that many company directors are letting themselves down by not being prepared when the CEO leaves.

Companies like RYM, FPH and MFT more often than not promote manages from within their organisation. Change overs are usually smooth and salary packages reasonable.
Other companies like Fonterra and FBU are not prepared it seems when their CEO leaves. They introduce CEOs who are demanding high salaries, and are often not familiar with the culture of the company. This lack of fitting in strikes me as creating a reduced commitment over time by them and it is not unusual that those outside CEOs are leaving the company in a lesser state as than when they arrived.
I have no doubt that those outside CEOs are very capable individuals, it's just that often it seems they are not that suitable for the positions our directors have in mind for them.

Promotion from within will also motivate middle management to excel in what they do in the hope of a promotion.
At present we creating the situation that experience managers are being managed by a CEO not familiar with company protocol with all the frustrations that are likely to come with that.

Thoughts ?