Board’s ability to “refresh itself on a regular basis can help ensure it maintains a proper mix of experience and expertise to meet the organization’s current and long term needs.” While noting that there is no ‘one-size-fits-all-approach’ to succession planning, you should have a plan.
- Examine the key corporate documents. The director nomination policy and any relevant policies setting out the appropriate protocols and procedures.
- Use an assessment framework. Base your criteria on organization needs and director performance.
- Conduct due diligence. Conduct an executive level due diligence background investigation.
- Maintain a pipeline. Maintain a pipeline of qualified candidates.
- Assess Board policies. Every Board should assess all policies around succession on a regular basis.
- Disclose your succession strategy. Both a large number of institutional investors and good corporate governance advocates suggest that companies disclose their Board of Director succession strategies. It provides greater transparency to stakeholders.
- Benchmark your succession strategy. Benchmark your succession strategy.
