Part II: Dennis Carey Says Succession Planning Crucial
Today boards discuss succession planning more than any other topic aside from making sure the current chief executive is the right one for the job. One probable reason that this subject is taken more seriously than it has been in the past is due to the provisions demanded by the groundbreaking Sarbanes-Oxley Act; the need to have “executive session” meetings, meaning that the board must meet without the executives present; the better to discuss their eventual replacement.
Dennis Carey, an expert on helping companies through the succession process, urges that boards make drawing up a succession plan part of the criteria for a boss’s pay. “Twice a year the board should ask the question, ‘Joe, if you were hit by a truck, who do you recommend should take over your role?’ The CEO should then write the name in a sealed envelope,” Dennis Carey continues, “in the eventuality of a truck-hitting incident.”
Continued…
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