The board of directors is responsible for ensuring that correct management is in place to run the organization. This includes hiring, evaluating, and — when circumstances merit — removing or replacing the chief executive officer.
This Quick Guide reviews the process by which the board carries out this function. It provides answers to the questions:
- How are qualified CEOs identified?
- What skills and experiences are needed?
- Are “inside” CEOs better than “outsiders”?
- How do boards plan for succession?
- What models or approaches do they use?