So you’ve made the decision that a change needs to happen at the CEO level, and heaven knows it’s painful! You rely on the CEO as quarterback of the team. It feels like the chief executive is indispensable. But you signed up for service on the board of directors. You know that while corporate governance is a general and varied responsibility, the shareholders trust the board to choose the right CEO. It is, perhaps, the board’s most important decision.
Of course, you’ll go through a permanent search that will be thorough, even if internally focused.
But what happens if you need to fire the CEO and find a new leader right now? Having a CEO exit with no CEO succession plan in place can create a leadership vacuum. The resulting instability within the organization can cause major issues and harm company performance.
The need for a new Chief Executive Officer, the right Chief Executive Officer, is urgent.
After a CEO dismissal, the first thought for many public companies is to look around the boardroom table to see who’s brave enough to be named interim CEO for Sarbanes Oxley compliance.
But, where’s the guts in just appointing a placeholder to keep the seat warm?
The modern world now presents you with a far more robust choice: a true interim CEO. A veteran executive who’s been there, done that. Who is expert at jumping into companies going through points of change. And who is accountable for action and results.
When considering whether to bring on a placeholder versus a true interim CEO until you can hire and onboard a new permanent CEO, here are the questions to ask at your next board meeting.