Scheherazade Daneshkhu wrote a piece for the Financial Times entitled, CEO attrition gives directors chance to step up. According to the story,
Plucking a CEO from among a company’s existing directors is becoming a trend, says Marc Sanglé-Ferrière, head of the Paris office of Russell Reynolds, the US executive search company, who says traditional succession planning does not work in a time of crisis.
“The new CEOs have tended to come from outside or to have been a recently-recruited board member. We are seeing that, as part of succession planning, companies are increasingly looking to put on the board one or two non-executive directors who could have the potential to become the CEO,” he said.
While the focus of the story was on European companies, Liberum has seen some of the same circumstance crop up in the United States. It is not a large trend but there have been a number of cases.
Recommended Reading – Yahoo: Carol Bartz Live From Stanford Directors’ College, Barron’s Tech Trader Dailyblog
June 22, 2009
Recommended Reading – The fallen giants of finance, Financial Times
December 23, 2008
Recommended Reading – Financials Post Sign of Times: CEO Wanted, Wall Street Journal
June 24, 2009
Recommended Reading – Sir Stuart Rose reshuffles his team at Marks & Spencer, Times Online
May 20, 2009
Recommended Reading – What Iceberg? Just Glide to the Next Boardroom, NY Times
December 28, 2009
