Competition can be fierce for certain director candidates making director succession planning a key to company health. Leading companies pay attention to their ability to attract and retain the best people, and this philosophy is no different at the board level. Director succession planning can also help mitigate risk in the case of an emergency exit of a director. On the human side, the shock of an unexpected death can be softened with work that has already been completed in a thoughtful manner. For the progressive board, being proactive in succession planning is a best practice. With the average age of the U.S. director being 60-plus, common sense demands, not only an awareness, but to have some of the pre-work in place. Here are a few benefits gained from conducting director succession planning:
- Plans for the impact of losing aging directors
- Advances the organization’s strategic and competitive position
- Increases the talent pool of board candidates
- Improves the board’s ability to respond to changing environments