Fillable Printable CEO Succession Planning Template
Fillable Printable CEO Succession Planning Template
CEO Succession Planning Template
CEO Succession Planning
Presentation by:DavidLarcker,Professor,Stanford University Graduate
School of Business and Director of the Rock Center for
Corporate Governance
Stephen Miles, Vice Chairman, Heidrick & Struggles
CEO Succession Planning
A Doseof Reality…
Overview
►Risk managementhas becomean especially critical
(perhaps new) focus forfirms
►Successionplanning and internal talentdevelopmentisa
fundamentalcomponentof risk management
►Investors,rating agencies and governmental entitiesare
startingto request(proprietary) informationabout
succession planning
►Successionplanning and internal talentdevelopment
translates directly intofuture shareholder/stakeholder
value
Assessment ofSuccessionPlanning
Internal Talent Pool forCEO
Internal Talent Pool forC-Level
Executives
Benchmarking the Internal Talent Pool
What Should the Next CEO Look Like?
Findanother just like
the onewe have?
OR
Findsomeone that is
completelydifferent
from what we have!
What Should the Next CEO Look Like?
CEO Succession Planning
Compliance-BasedversusOperational
Dangerous Myths Surrounding
Succession Planning
►External candidates aremore exciting and promising
―Boardsprefer the devil they don’t know to the devilthey do
―Internalsuccessors are often lower risk that outsiders
►The successor has to be ready now
―The only way to know if someone is“readynow” is after the fact
―The board must evaluate the context ofthe leadershipsituation
►CEO succession planning is a single-person event
―Boards focus on the CEO role in succession planning to the exclusion of other
positions
►What worked in the past willwork in the future
―What a company needs in the future may be drastically different from what was
needed in the past
―Examples: JamieDimon and BillHarrisonat JPMorgan Chase; MariusKloppers
and Charles Goodyear at BHP Billiton
►“Wehave a great internalcandidate– wedon’t need to look outside”
―A company cannot be myopically focusedon its own people
