Executive exodus

Seasoned managers know one of the coldest truths of corporate life: A new CEO means a scramble for survival in executive suites.

Fresh research published by a father-and-son team in this month's Harvard Business Review shows just how tenuous the jobs of trusted lieutenants can be when there's a change in the corner office.

Among the highest-ranking executives at public companies -- those listed in proxy statements -- a third are gone within a year after a new chief executive arrives from the outside, according to the findings. And the career trajectories of the departed aren't encouraging.

"Chances are high that executives will find themselves out the door," write Kevin P. Coyne , strategy professor at Harvard Business School in Boston, and his dad, Edward J. Coyne Sr. , assistant professor at Samford University School of Business in Birmingham, Ala. "They're more likely than not to land in a lower position at a new company, to work in a much smaller firm, or to retire altogether."

It may strike insiders as profoundly unfair that their years of labor and accomplishment under the previous boss count for nothing in the new regime. But the sagest corporate players understand that, in most cases, the new chief executive was hired to spur change and won't spend much time looking backward.

Thus, the fate of senior executives in the turnover meat grinder that's become a feature of American business hinges on their ability to start over, to adapt to a new style and strategy. With that in mind, the Coynes offer some recommendations for would-be survivors, based on feedback from leaders who've taken the reins after a predecessor was fired or a company acquired. Among them:

Be proactive. New chiefs are looking for teammates. Let them know you want to be on the team and ask how you can help.

Forget the past. The new boss is eager to move forward with a new agenda, and doesn't want to hear about your issues, your squabbles with other executives, or how you've been mistreated.

Embrace the new style and strategy. CEOs want their direct reports to mimic their working style and buy into their agenda, which in most cases has been laid out by the board.

Identify solutions, not problems. When the new chief is under pressure to improve performance and boost the company's share price, direct reports need to bring a game plan that can get results.

"Executives have to recognize that it's a new game, that the new guy doesn't know and probably doesn't care as much as you think he should about your past successes," Kevin Coyne suggested in an interview. "The new guy has other priorities, and he is going to judge you only by how well you perform against his own priorities."

But often one of those priorities is signaling to stockholders that the company will be run differently. Edward D. Breen did that at Tyco International Ltd., in the wake of financial abuses by former chief Dennis Kozlowski , by replacing every director and almost the entire senior executive team. Leo Mullin similarly cleaned house at Delta Air Lines, as did A.D. "Pete" Correll at Georgia-Pacific Corp.

In such cases, holdovers from the previous management are marked men and women who will face an uphill battle to save their jobs even if they follow the survival tips offered up by the Coynes.

Lauren Mackler , an executive coach and corporate consultant in Newton, said new CEOs often are too hasty in forming first impressions of their inherited subordinates, concluding they are likely to resist the new marching orders and sending them packing.

"The new CEOs are going to bring people in from their past teams that they know are going to produce results," Mackler warned. "Those people are like security blankets. But the message they send to the people who have been there is that they aren't good enough."

If the newly installed chief doesn't summon senior executives for a talk within the first week, Mackler thinks the execs should take the initiative: "Ask straight out, in a non confrontational manner, 'How do you see my job, my goals, my initiatives being impacted by the change?' " she said. "You have a right to know."

But the answer won't always be good. The research compiled by the Coynes, culled from proxy statements and other documents, demonstrates that executive turnover has become rampant in an era of quarterly earnings reports, private equity buyouts, and institutional investors hungry for outsized returns.

The turnover is higher when a new CEO comes from outside. But even in companies with no change at the top, there is considerable churn among high-ranking executives.

Of those who leave, just 4 percent were classified by the Coynes as "winners," landing better jobs at like-sized companies or similar jobs at bigger ones. Twenty-eight percent were "laterals," accepting lesser titles at larger companies, maintaining their rank at similarly sized firms, or taking promotions at smaller companies.

The majority, 65 percent, were labeled as "dropouts," joining small ventures or disappearing from corporate America's radar.

Harvard's Kevin Coyne had one other piece of advice for executives struggling with a changing of the guard at their businesses:

"Should you be lucky enough to get a call from a headhunter during this period, you should probably take that call more seriously," Coyne said. "Because our research shows that people actually get fewer of those than they expect they're going to get."

Robert Weisman can be reached at weisman@globe.com.