Published in Directorship - June 2010

CEO Succession - The Importance of Compensation

By Matt Turner

Executive compensation policies and programs have emerged as primary factors in a successful CEO succession process, from the development of internal talent and retention of top candidates to the determination of pay for the new executive, whether hired from within or outside the organization. Key issues include balancing CEO/NEO compensation; recognizing top executive talent with long-term, extended vesting compesnation; and maintaining meaningful performance-based pay practices and a rigorous evaluation process.

Matt Turner discusses these key issues and offers ideas for a thoughtful, proactive and strong planning process. Given the consequences and ultimate cost of a disorderly succession, preparing the organization for a smooth change in leadership is more important than ever.