Recommended Reading - SEC Targets CEO Succession Plans - New Risks for Boards, Says Heidrick & Struggles

Heidrick and Struggles, the high end executive recruiter and consulting firm, put out a press release today entitled, SEC Targets CEO Succession Plans - New Risks for Boards. According to the firm’s release,

“There is a whole new level of risk for corporate boards that could stem from the SEC’s legal bulletin this week, ushering in a sea change in how directors will view CEO succession planning,” says Stephen Miles, Vice Chairman of Heidrick & Struggles and Managing Partner of the firm’s leadership advisory services.

The release goes on to examine what companies might need to do to respond to the SEC legal notice that came out October 27th. While Heidrick and Struggles might have a point about the risks companies face with regard to the notice, the reality is companies functioning properly with regard to CEO succession have little to be concerned with. Company boards should stay on top of the SEC notice.

Recommended Reading - Boards Go Global, Buinsess week Management IQ blog

Jena McGregor wrote a fascinating piece on Business Week’s Management IQ blog yesterday on the growth of international members on corporate boards.  McGregor examines the issues surrounding the idea both pro and con.  She writes,

In an attempt to diversify, boards have long sought to add women or minorities to their ranks. But as U.S. markets slow and global revenues become more critical than ever, they’re increasingly seeking foreign members or directors with significant international know-how. “It’s an emerging area,” says National Association of Corporate Directors president Kenneth Daly. “There’s a lot of interest in foreign companies having U.S. directors as well as U.S. companies wanting foreign directors.” Bart Friedman, a partner with Cahill Gordon & Reindel, who advises boards on governance matters, says he sees the interest doubling each year. “I’m not aware of a board that hasn’t at least thought about the issue.”

The blog is very worthwhile read for anyone interested in the corporate boards and how they can be helpful to a company’s success.  Check it out.

For more:

Reuters

Recommended Reading - Why Boards Pick the Wrong CEOs

BusinessWeek highlighted a Harvard Business Online article by Jay W. Lorsch and Rakesh Khurana entitled, Changing Leaders: The Board's Role in CEO Succession - Why boards pick the wrong CEOs. The timing could not be any better for such a piece. As high-profile CEOs face the ax companies (particularly their boards) need to be better prepared to find the right replacements to get their companies back on track. Both the edited and full version of the recommended article are worth a read.