CEO’s and other employees holding important positions may retire or resign at any time, for any number of reasons. Continuing with strong employee performance and smooth operations is essential for maintaining shareholders, so preparing for the loss of a powerful employee is extremely important. To make sure your company or business is prepared, succession planning is crucial.
Planning for and deciding on successors is no easy task, but it is an important one. Succession can be an emotional process for existing employees, so seeking outside advice from an attorney can help mediate the process. At the Arenson Law Group, PC, our legal team understands the importance and challenges of corporate succession planning, and we are ready to help your company plan for the future. Our corporate succession lawyers have experience in all aspects of succession planning.
The Succession Process
There are four main stages of succession, which the company’s lawyer should oversee as they reach completion. The stages include:
- Initiation: The present manager or CEO should discuss their role and expectations to the prospective successors, allowing them to decide if they can handle the position and maintain the values of the business.
- Selection: Selecting a candidate for the position is a trying process, especially when you are trying to spare one’s feelings. Select candidates based on how well they can meet the goals of the company with their management style.
- Education: Training the chosen successor is important, and establishing a training program can help. The program should build responsibility and teach the successor the duties of the current CEO. The present CEO may take time off so that their successor can practice their new job.
- Transition: During the transition phase, the outgoing employee can plan for retirement or other ventures while the incoming employee moves into the new position.
While there are other models of succession, the steps above are a basic outline that many successful businesses follow. An attorney can help guide you through the process, as well as ensure that the incoming and outgoing employees prepare for the future.
Contact a Corporate Succession Lawyer in Cedar Rapids
Planning for your company’s future can be stressful, but an experienced corporate succession lawyer can help ease you through the process. We want your succession to happen in an efficient and legal manner. The legal team at the Arenson Law Group, PC, believes your business should feel secure when changing management, no matter the reason. To discuss your succession plans with a Cedar Rapids corporate succession lawyer, call (319) 363-8199.
Written by James H. ArensonLast Updated : October 13, 2023