Integral Advisors, LLC and Board Advisor, LLC conducted qualitative research with a variety of players within the investment community to identify the key CEO “succession risks” that they were concerned about. Investors understandably are concerned about both the process and the substance of CEO succession planning, especially in companies where the CEO does not maintain deep bench strength of executives old enough to be capable and young enough to be available. Not much has changed since the publication of Jeffrey Sonnenfeld's ground-breaking book, The Hero's Farewell: What Happens When CEOs Retire, except that investors are more aware of the risks and consequences of board failure. I like the way this study raises the core issues of board and executive involvement by pointing to specific indicators that go beyond disclosure. For more information, contact Beverly Behan: beverly.behan@boardadvisor.net
Nell Minow - Editor
