More than ever, CEOs are exiting large public companies. In the first quarter of 2019 alone, there were more than 20 announced resignations of public company CEOs. What makes this trend tricky for the board of directors is several of these have been deemed “involuntary retirements,” rather than a traditional retirement or a conventional termination.
“It may be apparent to the savvy shareholder that the executive is involuntarily being terminated, but because they’ve been with the company for a number of years and have reached a normal retirement age, they’re being allowed to take their retirement,” says Jonathan Szabo, lead consultant with Meridian Compensation Partners.
Szabo spoke with Corporate Board Member in the above video about how boards can navigate the uncharted territory of involuntary retirements from CEOs and how to craft their exit packages.
