Sudden death, dismissal or a failed successor: succession planning on trial.
CEO Jim Cantalupo died suddenly of a heart attack at a franchisee convention in Orlando.
The board named COO Charlie Bell CEO within hours and made presiding director Andrew McKenna non-executive chair.
The textbook case for having an emergency successor ready.
The board fired CEO Sam Altman, saying he was not ‘consistently candid’. Nearly all staff threatened to leave for Microsoft.
Within five days Altman was back and most of the old board was replaced by Bret Taylor (chair), Larry Summers and Adam D’Angelo.
Firing a CEO without a clear case and stakeholder support can backfire on the board.
Bob Chapek, Iger’s hand-picked successor, faced weak earnings, a staff revolt and falling shares, months after a contract extension.
The board ousted Chapek and brought back Bob Iger for two years, with a mandate to develop a successor.
A failed succession is costly; boards must own the pipeline.
CEO Steve Easterbrook was fired ‘without cause’ over a relationship with an employee. A whistleblower later revealed more relationships he had hidden.
The board sued him in 2020 and recovered $105M+ in cash and stock, one of the largest clawbacks ever.
Boards must verify facts before agreeing exit terms, and enforce the code at the top.
CEO Laurent Freixe had an undisclosed romantic relationship with a direct subordinate, flagged by staff through the hotline. He first denied it.
An investigation led by the chair and lead independent director, with outside counsel, ended in his dismissal with no exit package. Philipp Navratil replaced him.
A whistleblower channel and an independent investigation protect the board’s credibility.