October 04, 2019
When it comes to identifying and developing organizational leaders, public companies often find themselves scrambling to select board successors. Partner Adrienne DiPaolo discusses the process of succession planning and keeping pace with regulations in the Director Journal’s column Directors’ Dilemma.
The column poses the question to readers, “What do other organizations do to deal more effectively with board succession planning?”
Adrienne suggests “having frank discussions with directors about their planned tenure can give the governance committee the luxury of time to develop a successor”. This form of proactive planning is essential in identifying an effective process—but boards must also meet regulation standards.
“Public companies are effectively being steered towards these broad matrices by regulators”, says Adrienne.
“Securities laws have long required public companies to disclose gender diversity initiatives and board renewal mechanisms in their annual proxy circulars”, adds Adrienne. “The Canada Business Corporations Act (CBCA) will soon go further—public CBCA companies will also need to address the representation of visible minorities, Indigenous peoples and people with disabilities on their boards starting in 2020”.