This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Succession Takes Planning: Leadership Matters

NEW YORK ( TheStreet) -- Reading a couple of days ago about Dun & Bradstreet 's (DNB) CEO Steven W. Alesio's upcoming retirement, I was struck by how orderly the succession of leadership was going and how reassuring it is to shareholders who can see that the D&B board is prepared for leadership changes.

This has been the case before at D&B. When Allan Loren retired as CEO and chairman, Alesio moved smoothly into the CEO position first and then the chairman position shortly thereafter. Now, with Alesio's departure, Sara Mathews will move into the CEO position first and then the chairman position.

If you have been following D&B, you can also see that several key senior management shifts have taken place in order to facilitate the transition, although they may or may not replace the COO position. But you have the impression that being around well over a century has taught D&B the value of thoughtful and planned leadership development.

When companies ignore the obvious need to have top executive succession planning in place, they put shareholders at unreasonable risk. What responsibility is more of a priority to a board of directors than to have a lock on current and future leadership of their organization?

This is why the Bank of America (BAC - Get Report) succession drama is so frustrating. Is it possible that everybody and their uncle knew that Ken Lewis's days were numbered except the board? Even if Lewis is innocent of any wrongdoing, the heat he has taken from the media and the pressure he has been under for months to turn BofA around should have alerted somebody that a plan to ensure uninterrupted leadership was essential.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $11.38 2.00%
DB $15.51 0.00%
JPM $54.90 3.40%
PG $79.90 0.00%
AAPL $93.70 0.00%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs