As boards of directors continue to face increasing public scrutiny from shareholders, media, analysts, employees and the government, it is imperative that they communicate the business rationale that guide their decisions.
This is especially true during the CEO transition process, when communications can move the volatility of a company’s market value by 5-10 percent during the first 10 days following the transition (according to Oxford Metrica for Edelman, 2011). Developing and implementing a tailored communications strategy around a board’s choice in successor is the primary method to build support from those influencers who directly affect the performance of the company.
A CEO transition is a rare opportunity for board members and companies to directly improve trust and shareholder value. In protecting the board’s decision, you will be ultimately setting the new CEO up to win.
Regardless of whether a transition is seamlessly planned or unexpected and immediate, Edelman’s CEO transition communications team works confidentially with the board and the company’s executive advisory team to preempt stakeholder concerns.