Preparing for a Succession Emergency: Learning from Unexpected CEO Departures

The Conference Board Director Notes No. DN-V5N3, February 2013

Georgetown McDonough School of Business Research Paper

12 Pages Posted: 11 Mar 2013

See all articles by Jason D. Schloetzer

Jason D. Schloetzer

Georgetown University - Department of Accounting and Business Law

Edward Ferris

Milano School of Management and Urban Policy

Abstract

Succession planning is one of a board’s most important oversight responsibilities. Accordingly, a majority of corporate boards conduct an annual review of the CEO succession planning process. However, emergency succession events, such as the unexpected departure or sudden death of a CEO, act as a “stress test” of the succession process and place considerable pressure on boards to act swiftly and decisively to fill the leadership gap. A quick response can be problematic if the succession planning process lacks an emergency component or a succession-ready candidate is unavailable. This report outlines common issues that arise during an emergency succession, provides guidance on how to prepare for and respond to a succession crisis, and encourages boards to integrate succession planning into the company’s crisis-preparedness process.

Keywords: CEO succession, succession planning, corporate governance, crisis management

JEL Classification: G30, G34, M51

Suggested Citation

Schloetzer, Jason D. and Ferris, Edward, Preparing for a Succession Emergency: Learning from Unexpected CEO Departures. The Conference Board Director Notes No. DN-V5N3, February 2013, Georgetown McDonough School of Business Research Paper, Available at SSRN: https://ssrn.com/abstract=2231236

Jason D. Schloetzer (Contact Author)

Georgetown University - Department of Accounting and Business Law ( email )

McDonough School of Business
Washington, DC 20057
United States

Edward Ferris

Milano School of Management and Urban Policy ( email )

66 Fifth Avenue
New York, NY 10011
United States
2153536472 (Phone)

HOME PAGE: http://www.charlesmore.com

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
466
Abstract Views
3,026
Rank
113,215
PlumX Metrics