Preparing for a Succession Emergency: Learning from Unexpected CEO Departures
The Conference Board Director Notes No. DN-V5N3, February 2013
12 Pages Posted: 11 Mar 2013
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: Suggested Citation