Plans for CEO succession often leave out death and disaster, which include – in the age of #MeToo – sexual-assault revelations against executives. Indeed, corporate boards of directors are facing the loss of company leaders with increasing frequency, in part because of a marked increase in sexual-harassment cases.
Yet, statistics indicate that up to 36 per cent of private-sector companies lack a plan for any kind of leadership change, suggesting that an even larger number may lack procedures for the unanticipated exit of a corporate leader.
Good communication is vital whenever a leader is unexpectedly lost and a crisis-communications adviser might be advised. Governance specialists agree that it is crucial to instill confidence in investors, bankers and other suppliers, employees and customers.
Lexpert contributor Brian Burton reports at www.lexpert.ca. Follow @Lexpert on Twitter. Lexpert is published by Thomson Reuters.