US chief executives are being shown the door at a record pace, but recent surveys suggest that many companies remain unprepared to find a new CEO in a hurry.Planning for CEO succession is considered one of the most important tasks of corporate directors, but surveys of board members suggest that companies often don't have very good plans in place for tapping a replacement - especially in emergencies such as when a CEO suddenly resigns or dies.
Boardroom experts say directors are more aware of the issue than before, in part because CEO turnover has been so heavy lately, but that board members still don't spend enough time on formal planning for succession.
They say succession has always been a tricky boardroom topic because there is no guidebook on how to pick a replacement-in-waiting. Also, experts say many boards traditionally have deferred too much to the current CEO - who might not be eager to discuss the possibility of his or her sudden death or departure or want to groom a successor ready to move into the corner office at a moment's notice.
Courtesy : Express India.com
Boardroom experts say directors are more aware of the issue than before, in part because CEO turnover has been so heavy lately, but that board members still don't spend enough time on formal planning for succession.
They say succession has always been a tricky boardroom topic because there is no guidebook on how to pick a replacement-in-waiting. Also, experts say many boards traditionally have deferred too much to the current CEO - who might not be eager to discuss the possibility of his or her sudden death or departure or want to groom a successor ready to move into the corner office at a moment's notice.
Courtesy : Express India.com