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Authors :
Gagné, Claire
Source :
Canadian Business. 7/19/2004-8/2/2004, Vol. 77 Issue 14/15, p71-72. 2p. 2 Color Photographs.
Publication Year :
2004

Abstract

The article focuses on planning executive succession. Last year almost one-tenth of North American companies changed their CEOs. And according to a study done by U.S.-based global communications consultants Burson-Marsteller, 73% of American CEOs considered throwing in the towel in 2003. There are many reasons for chief-executive turnover--retirement, an emergency health problem or a change in the strategic direction of the company, among them. But whatever the reason, there should definitely be a plan in place. The responsibility for succession ultimately lies with the board of directors. Given the management scandals dominating the headlines and the sudden deaths of McDonald's chairman and CEO Jim Cantalupo and Fiat chairman Umberto Agnelli, which threw those corporate giants curveballs, succession planning is not something an effective board can safely ignore. First, it has to start talking openly about succession. This is where boards can drive the process--they can ask the current management to give them a choice. One way of developing candidates to head a company is to identify rising stars and groom them, says Dora Vell, a partner at executive search firm Heidrick & Struggles. At Alberta-based Enbridge Inc., the strategy worked, according to Bonnie DuPont, group vice-president of corporate resources for the energy transportation company.

Details

Language :
English
ISSN :
00083100
Volume :
77
Issue :
14/15
Database :
Academic Search Index
Journal :
Canadian Business
Publication Type :
Periodical
Accession number :
14001665