Succession planning for the CEO role is a key responsibility of single-tier boards, just as responsibility for the succession of the entire executive committee is the supervisory board’s obligation in a two-tier system. The days of boards waiting until several months before a transition and then accepting or rejecting the recommendation of the outgoing executive regarding internal candidates are largely gone. In well-governed companies today, boards fully understand that effective succession planning is an ongoing process that requires consistent, dedicated work on their part.
As they approach this complex and highly political task of succession more seriously, however, even the most well-intentioned boards can encounter pitfalls that can derail the process, offend internal candidates or negatively affect employee morale or the company’s reputation.
See full Press Release.
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