The recent departures of two of the world's most prominent chief executives in the wake of major financial losses at their firms -- Stanley O'Neal of Merrill Lynch and Charles Prince of Citigroup -- have focused renewed attention on an important but often neglected component of corporate management: succession planning.
While the boards of both companies conducted internal and external searches to find successors, published reports speculated that they would hire from the outside. On November 14, Merrill Lynch did its part to confirm those rumors by announcing that John Thain, CEO of NYSE Euronext and a former president of Goldman Sachs, will become chairman and CEO of the firm effective December 1. Meanwhile, Citigroup has named former U.S. Treasury secretary Robert Rubin as its chairman while continuing its chief executive search, having tapped Sir Win Bischoff, a London banker who joined Citigroup when it acquired the investment banking operations of Schroeders in 2000, as the company's interim CEO.
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