A Board’s Duty On Succession

A board of directors has a fiduciary duty to shareholders to oversee a corporation’s short- and long-term business strategy. A crucial part of that responsibility is to have a succession plan in place for the company’s directors and its CEO.

“Directors should not wait until a crisis prompts a CEO departure. A board should be discussing succession regularly, considering that the average director at a large-cap company will oversee two CEO transitions during his or her tenure” – Janice Ellig

Read full NASDAQ article HERE