Succession Planning
Luca Giacalone looks at what is probably the most important board decision – who should lead the organisation? 05 March 2020
For the August issue of the Governance magazine, Luca Giacalone looks at what is probably the most important board decision – who should lead the organisation?
To evaluate how companies are dealing with the topic of Lead Executive succession, SquareWell Partners (SquareWell) since January 2019 has tracked close to 500 companies included in the main stock indices in Europe, the UK, and the US. The review showed that 16% of companies across all regions had appointed a new Lead Executive during the period, with turnover being the highest among US companies.
While the topic of succession planning is of great interest to investors, SquareWell’s study shows that companies fail to provide the market with the information needed to assess a company’s leadership plans. As the quality of management remains a key factor for fundamental investors, investors will increasingly demand clarity from boards of directors on succession planning and their preparedness to carry out a smooth transition, whether planned or unplanned.
You can access Luca’s full article here (subscription required).
