What kinds of incentive schemes and principles for succession planning would need to be in place to support ethical conduct and transparency?
The selection and evaluation of the chief executive officer and concurrence with the CEO's selection and evaluation of the corporation's top management team is probably the most important function of the board. In its broader sense, "selection and evaluation" includes considering compensation, planning for succession and, when appropriate, replacing the CEO or other members of the top management team.
The performance of the CEO should generally be reviewed at least annually without the presence of the CEO and other inside directors. The board should have an understanding with the CEO with…
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- What kinds of incentive schemes and principles for succession planning would need to be in place to support ethical conduct and transparency?
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