Succession Planning: A Board’s Blueprint for Stability
Proper board succession planning—the systematic process of identifying and placing qualified candidates in current or upcoming board seat vacancies—is vital for corporate stability and continuity. However, many companies struggle to recognize its importance. Findings from the Nasdaq 2024 Global Governance Pulse survey shows that private companies are half as likely to have a formalized board succession plan in place compared to public companies. And only 28% of all survey respondents believe their succession planning process is effective.
Board succession planning should be directly aligned with the company’s vision for its future. Approaching board composition from a strategic analysis can help keep the board’s aggregate composition aligned with business objectives and ensure that board transitions are seamless and avoid causing reputational damage.
Read the blog to learn the 5 components of effective board succession planning.
