Succession planning: definition and process

The issue of succession planning is among hot topics in the governance of listed Italian companies. In recent months in Italy we have 3 cases of companies which are among the first 10 market cap within the FtseMib index: Generali, Telecom and Unicredit.

Sodali, on the topic, collaborated with NedCommunity at the publication of the book "THE SUCCESSION PLANS OF EXECUTIVE DIRECTORS".

Francesco Surace, Corporate Governance Advisor,  pointed out that, in principle, boards of directors should approve and implement the transparency on succession planning in the corporate governance report. Such communication should be done by clarifying the essential aspects of the operation of the aforementioned plans and by avoiding the mere compliance on the existence of a succession plan, without providing any details about the procedure and the functionality of the same.