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.