Wednesday, December 18, 2013

Impact of not having a CEO Succession plan? 1% of Stock Value

How important is succession planning for the CEO? Just look at Microsoft

The Board of Directors of Microsoft have announced that they don't have a successor for Balmer, and instead are starting with a slate of over 100 potential candidates. As a result, the Board (in a very rare move) communicated that they will likely solve the gap by early 2014.

Looking at Microsoft stock (and based on the boards announcement) - the stock is initially down 1%. However, it will be interesting to see how much lower it goes in Jan.

Source: http://online.wsj.com/news/articles/SB10001424052702304858104579264422771653250

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