The most recent Executive Quiz results released by the Korn/Ferry Institute indicate the majority of companies are not prepared for succession in the C-suite – that is, the corporation's most important senior executives.

The survey shows that 59 percent of executives do not feel their company has a defined succession plan in place. The quiz results also suggest that most companies are not adequately prepared should their CEO resign suddenly. When executives were asked if they knew who would assume leadership of their company, just slightly more than half said “yes.”

Illustrating the risk of operating without a succession plan, the majority of executives said that the departure of their current CEO or president would be extremely or somewhat damaging to the company. Only 21 percent said it would not be damaging, while 11 percent said it would be beneficial. 

While many executives feel corporate-wide succession plans are not as defined, they feel more confident that a successor is being groomed to take their own individual post. Fifty-nine percent of executives reported knowing who would assume their role if they left their company today.