Examining the Impact of SEC Guidance Changes on CEO Succession Planning
In an October 2009 release, the United States Securities and Exchange Commission effectively removed the ordinary business exclusion defense used by companies reluctant to disclose their CEO succession process to shareholders. The policy change allows for a new wave of corporate governance scrutiny, as regulators and shareholders increasingly focus on CEO succession practices. Companies and boards would do well to prepare, write Justus O'Brien, a consultant at Egon Zehnder International, New York, and shareholder relations expert Edward Ferris in an article published in The Conference Board.
