"The paper is a must read for anyone interested in CEO succession and its implications for corporate governance and corporate performance."
In October 2009 the SEC effectively removed the ordinary business exclusion defense used by companies reluctant to disclose their CEO succession process to shareholders. The policy change heralds a new wave of corporate governance scrutiny, as regulators and shareholders increasingly focus on CEO succession practices.
In its release the SEC reframes CEO succession as a risk management (and policy) issue and places its responsibility firmly in the boardroom. No longer can boards let management run CEO succession planning without tight oversight, including setting more specific standards and requirements, taking responsibility for results, and exercising discernable independence in the process.
Hedge Fund Solutions and Egon Zehnder International recently co-authored a report for The Conference Board that examines this issue and its implications in some depth. We invite you to download a complimentary copy and learn how to prepare for the inevitable governance and activist scrutiny ahead. The paper analyzes the practical impact of the new SEC guidance, explain what shareholders need to know and why, and provide a straightforward guide on how to set up and manage CEO succession practices that satisfy stakeholder needs.
Download a complimentary copy
Examining the Impact of SEC Guidance Changes on CEO Succession Planning
Posted by Edward Ferris, a Partner with Hedge Fund Solutions
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