Welcome to the Day 5 and final installment of the five-day podcast series Jay Rosen and I are producing in honor of the latest Star Wars movie The Rise of Skywalker. Each day over this week, Jay and I have reviewed a Star Wars movie and discuss it from the compliance perspective. Today, we consider Episode VII, The Last Jedi and the role of a Board of Directors in succession.
A Board’s ability to renew itself on a consistent basis can help ensure it maintains a proper mix of experience and subject matter expertise any businesses current and down the road needs. While noting that there is no ‘one-size-fits-all-approach’ to succession planning, you should have a plan.
- Examine the key corporate documents. The director nomination policy and any relevant policies setting out the appropriate protocols and procedures.
- Use an assessment framework. Base your criteria on organization needs and director performance.
- Conduct due diligence. Conduct an executive level due diligence background investigation.
- Maintain a pipeline. Maintain a pipeline of qualified candidates.
- Assess Board policies. Every Board should assess all policies around succession on a regular basis.
- 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.
- Benchmark your succession strategy. Benchmark your succession strategy.
Jay gives the film a full bucket of hot buttered popcorn. Tom gives it 1.5 buckets of overflowing non-butter popcorn, together with an Extra Large Diet Coke. We hope you have enjoyed this series and of course.
MAY THE FORCE BE WITH YOU