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.

  1. Examine the key corporate documents. The director nomination policy and any relevant policies setting out the appropriate protocols and procedures.
  2. Use an assessment framework. Base your criteria on organization needs and director performance.
  3. Conduct due diligence. Conduct an executive level due diligence background investigation.
  4. Maintain a pipeline. Maintain a pipeline of qualified candidates.
  5. Assess Board policies. Every Board  should assess all policies around succession on a regular basis.
  6. 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.
  7. 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.