Six Compensation Decision Points in a CEO Transition

CEO succession is not only a key Board responsibility, but often generates extensive media coverage and public scrutiny - particularly if the change of leadership change does not proceed smoothly.

This article discusses six key elements of a CEO transition that can serve as a check list resource in an actual transition:

• Develop an exit package for the outgoing CEO
• Understand broader competitive pay practices ahead of recruitment
• Determine what a prospective candidate would leave on the table
• Craft a compelling offer package in the form of a term sheet
• Draft an employment agreement, offer letter and other legal documentation
• Prepare needed communications