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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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31

Creating an Effective CEO Succession-Planning Process

JAMES F. REDA

Arthur J. Gallagher & Company’s Human Resources and Compensation Consulting Practice

MOLLY A. KYLE

Arthur J. Gallagher & Company’s Human Resources and Compensation Consulting Practice

The board of directors should make leadership and succession planning a high priority, with meaningful compensation opportunities, especially for the CEO. A strong succession-planning process helps to prepare the entire organization to handle senior executive departures when they inevitably occur. Thoughtful and proactive executive compensation policies and programs are important to CEO succession. A balance in CEO–senior executive compensation is important, and vigilance in ensuring that senior ...

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