CEO and director succession are quintessential board composition issues. Having smooth transitions in these leadership roles is crucial to a company’s long-term success. Board and committee leadership succession is also as important.
PwC’s 2016 Annual Corporate Directors Survey
CEO succession is arguably the board’s most important responsibility. The CEO develops the company’s strategy, drives execution, and sets the ‘tone at the top.’ But despite its importance, not all boards are as on top of it as they should be.
Building the bench: Strategic planning for CEO and executive succession
According to a recent study by PwC’s Strategy&, companies that are not prepared to replace their CEO lose, on average, $1.8 billion in shareholder value.
CEO succession planning: A critical board responsibility
A company’s performance and its board’s composition play key roles in determining whether it winds up with an internal or external candidate for CEO, according to this new publication.