Key Takeaways:
The basic tenants of succession planning require continuous focus and consensus and can provide an outline for preparation and vigilance. These include:
Boards should build in process and policy around board refreshment.
Board composition should be built for purpose - Consider directors with multiple skills and experiences so there is overlap existing in the boardroom.
Succession doesn’t end with appointment – it further requires a robust onboarding system for the new director.
Expanding the board to accommodate new board members before the departure of a retiring director can efficiently provide transfer of institutional knowledge and avoid “reinventing the wheel.”
A board member with shareholder engagement skills and investor understanding that can help management articulate their story is the best defense against activists.
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