succession planning...succession planning the board’s most important task!denmark: last 10 years...
TRANSCRIPT
SUCCESSION PLANNINGSame task but different approach
Publicly owned company
• FL Smidth (DK)
• Select Service Partner (UK)
• Air Canada (CA)
• Royal Caribbean Cruises (USA)
PE owned company
• Flying Tiger (DK)
• Tia Technologies (DK)
• Nordic Aviation Capital (DK)
• VFS (CH)
• Unilode (CH)
Family owned company
• CP Dyvig (DK)
• Braganza (SE)
SUCCESSION PLANNING The Board’s most important task!
Denmark:
Last 10 years in Denmark’s 52 largest companies:
83%of the companieshave changed CEO
57CEO changes
65%thereof EXTERNAL
32%thereof NON-DANES
Source: Korn Ferry
SUCCESSION PLANNING The Board’s most important task!
USA:Significantly higher proportion internal recruitments (75-80%)
Better, more formalized succession
planning process ?
20142/3 had no formalized process
201750% had a formalized process (due to changed SEC guidelines)
Source: The Conference Board
DOES EXTERNAL CEO RECRUITMENT INDICATE POOR SUCESSION PLANNING?
Generally, YES!
• Fresh pair of eyes
• New skillset desired
• The external benchmark better
• Sends negative signals internally
• Creates uncertainty
• Loss of momentum/Learning curve
• Increased risk of “non-fit”
BUT …
Identity & Assess
InternalCandidates
Identify & EnsureSmooth
Transition
CEO SUCCESSION
CEO Succesion is not an
event. It is an ongoing
process for developing
your talent pipeline.
”
Source: Korn Ferry
EVERYTHING STARTS WITH TALENT MANAGEMENT
APPLICATION DEPENDENT ON
Geography (Governance model)
Size of Company
Ownership structure
PLANNING AND EXECUTIONTwo different things
Profile can change
Key persons quit
The timing changes(performance, illness etc.)
THREE EXAMPLES
Internal candidate External candidate ?
BOARD SUCCESSION PLANNING
A different discipline which also requires careful planning and continuous focus
• The chairman’s task• The role of the Nomination Committee • Diversity• Board dynamics• Governance model• Recruiting to committees