Heidrick and Struggles, the high end executive recruiter and consulting firm, put out a press release today entitled, SEC Targets CEO Succession Plans – New Risks for Boards. According to the firm’s release,
“There is a whole new level of risk for corporate boards that could stem from the SEC’s legal bulletin this week, ushering in a sea change in how directors will view CEO succession planning,” says Stephen Miles, Vice Chairman of Heidrick & Struggles and Managing Partner of the firm’s leadership advisory services.
The release goes on to examine what companies might need to do to respond to the SEC legal notice that came out October 27th. While Heidrick and Struggles might have a point about the risks companies face with regard to the notice, the reality is companies functioning properly with regard to CEO succession have little to be concerned with. Company boards should stay on top of the SEC notice.
Recommended Reading – SEC to Examine Boards’ Role in Financial Crisis, Washington Post
February 20, 2009
Recommended Reading – Paying Big Bonuses Exposes Wall Street’s CEO Succession Failure, Bloomberg
January 27, 2010
Recommended Reading – CEO Succession Planning Lags Badly Research Finds, Stanford Graduate School of Business
June 17, 2010
Recommended Reading – CEO and CFO Career Consequences to Missing Quarterly Earnings Benchmarks – Academic Paper
September 24, 2008
