Interesting 2016 paper by Susan Schroeder for CAP, an executive compensation consulting firm:
Companies transitioning from a long-term Chief Executive Officer
and involved in CEO succession planning, especially for a company
founder or head of a family-owned company, are looking to retain
and capitalize on the outgoing CEO’s institutional knowledge while
ensuring a smooth transition to the new leader. In response to
this need, some creative companies are transitioning their
outgoing Chief Executive Officer to the position of Executive
Chairman of the Board. The Executive Chairman position allows the
organization to leverage the former CEO’s personal client
relationships and institutional knowledge while allowing him to
retain employee rights and benefits, assist in the transition
process, and gradually phase out of CEO responsibilities.
That’s what Jeff Bezos is doing at Amazon. It was also Apple’s plan when Steve Jobs stepped down as CEO in August 2011, if he’d been able to stay a few steps ahead of the cancer. A year ago Bob Iger made this transition at Disney.
★ Tuesday, 2 February 2021