Purpose
Recognizing that changes in management are inevitable, [Company Name] has established a succession plan to provide continuity in leadership and avoid extended and costly vacancies in key positions. [Company Name]'s succession plan is designed to identify and prepare candidates for high-level management positions that become vacant due to retirement, resignation, death or new business opportunities.
Policy
It is the policy of [Company Name] to assess the leadership needs of the company to ensure the selection of qualified leaders that are diverse and a good fit for the organization's mission and goals and have the necessary skills for the organization.
Procedures
The president/CEO is responsible for [Company Name]'s succession plan. The president/CEO chairs the succession planning committee, which also includes the executive vice president, the general counsel and the vice presidents of human resources and finance.
- Each January, a succession planning committee meeting will be held. At each meeting, each division head will:
- Present to the committee a review of the departmental succession plan.
- Identify key positions and incumbents targeted for succession planning. This should include an analysis of planned retirements, potential turnover, etc.
- Identify individuals who show the potential needed for progression into the targeted positions and leadership within the company.
- Outline the actions taken in the previous six months to prepare identified individuals to assume a greater role of responsibility in the future.
- By the end of February each year, the committee will approve targeted candidates.
- By the end of March each year, the committee will approve an outline of actions that will be taken in the following six months to prepare individuals to assume a greater role of responsibility in the future.
- The president/CEO will periodically request updates from senior management on the development process for each targeted candidate.
The committee establishes a succession plan that identifies critical executive and management positions, forecasts future vacancies in those positions and identifies potential managers who would fill vacancies. Vacancies will be filled from within or, in the event no viable candidate is available, on an "acting" basis while an external recruitment effort is conducted.
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