Tuesday, April 18, 2006
The Role of the Board in CEO Succession
The NACD has a new publication out called The Role of the Board in CEO Succession. This is much needed as CEO succession is probably the most difficult issue any board of directors will face. One of, if not the most important, function of a CEO is to develop subordinates who can succeed him or her at the proper time. The board needs to oversee this process as part of the board's strategic direction to management of the company. One of the board committees -- usually compensation and nominating -- should review succession planning processes and, in particular, likely successors to key executives at least annually.