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.

  1. Examine the key corporate documents. The director nomination policy and any relevant policies setting out the appropriate protocols and procedures.
  2. Use an assessment framework. Base your criteria on organization needs and director performance.
  3. Conduct due diligence. Conduct an executive level due diligence background investigation.
  4. Maintain a pipeline. Maintain a pipeline of qualified candidates.
  5. Assess Board policies. Every Board should assess all policies around succession on a regular basis.
  6. 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.
  7. Benchmark your succession strategy. Benchmark your succession strategy.