Saying Goodbye: How to Navigate an Unexpected Board Director Departure

May 13, 2021 by No Comments

The unexpected departure of any employee – whether through termination, resignation, or unexpected life event – can be a challenging and difficult experience. But when the individual in question is a director, the situation takes on an entirely new level of complexity. Many companies have little in the way of formal succession plans in place to cover an unexpected director departure, which can exacerbate an already stressful situation. Meanwhile, should a director’s actions require removing the director from the board, there are no clear-cut guidelines for when or how to terminate a director, and the actual decision to do so is subject to interpretation, pushback, and even potentially litigation.
Regardless of the situation, preparing for the eventual departure of board members is almost as important as recruiting them in the first place. Every director influences the way the board executes its duties and serves the company’s stakeholders, while also bringing personal experience and a unique perspective to the table. Even a small adjustment to the composition of a board can have a big — and often positive — impact.
Join us for a webinar roundtable discussion of best practices for handling unexpected director departures, including discussion on:
• What are the best practices for developing a director succession contingency plan?
• Are there best practices for director removal?
• How do regulatory requirements affect the process, if at all?
• What are the best ways to help a director make a graceful exit, when one is required?
• What liabilities do the board and/or the company potentially face in an unexpected departure?
• In the event of a removal, who takes the lead on the exit presentation and demand? What is the role of the lead director? What role does the CEO play?
• To what extent can board refreshment initiatives or rotation of board leadership help ensure resiliency of the board?