Communication Practices in CEO Succession

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2013-07-25

Summary:

Editor's Note: Matteo Tonello is managing director at The Conference Board. This post relates to an issue of The Conference Board's Chart of the Week series authored by Dr. Tonello.

A review of the CEO succession announcements made by S&P 500 companies in 2012 showed that they typically included details on when the succession would take effect, why the departing CEO is leaving, and whether the incoming CEO will be named board chairman; a statement by the departing CEO on his/her belief that the board has selected a qualified replacement; a statement by the lead independent director that the incoming CEO is the right choice for the company, given its current position, and thanking the departing CEO for his/her service; a statement from the incoming CEO that the existing management team is strong, the company is well positioned for the future, and expressing appreciation that the board has selected him/her as chief executive; and a description of the incoming CEO’s professional qualifications, and, if necessary, details on other director or senior management changes that will take place.

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Link:

http://blogs.law.harvard.edu/corpgov/2013/07/25/communication-practices-in-ceo-succession/

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Tags:

practitioner publications boards of directors executive turnover matteo tonello the conference board management shareholder communications succession public firms form 8-k

Authors:

Matteo Tonello, The Conference Board,

Date tagged:

07/25/2013, 13:40

Date published:

07/25/2013, 10:22