While companies have plans to accommodate potential staff rotations, the situation is not the same for the succession of the chairman and other board members. Half of companies (49%) not prepared for their president to leaveAccording to the ‘Strategic role and new challenges of the Appointment and Remuneration Committee’ report by ESADE. In contrast, the use of succession plans is increasing in other executive positions such as CEO (68%) and management team (58%). The rest of the executives are only 31% covered. It should be noted that these measures are mainly applied in large companies, while in small and medium-sized companies it is something very permanent.
In addition to legacy, integration and diversity are two issues pending on boards. To date, integration has been the least considered area by members and people outside of this commission. And regarding inclusionyes ok 85% of councils maintain a high level of engagement, “Considering the criteria and targets that follow up at the Appointment and Remuneration Committees, it is not conveyed at the same intensity”. Specifically, only 62% of respondents made this statement. Especially for the members who do not belong to this commission, they are the most reported metrics along with the health and safety of the employees. The report also points out that this commitment to promoting incentives for diversity, equality and inclusion for the CEO or senior executives is not reflected in the short term (40%) or long term (34.9%).
Of course, both human vulnerabilities and talent management and succession best considered in the overall risk maps of companies (81%) more than contingency plans (69%). In addition, managers who are not on the nomination committee prioritize regular auditing of risks. fiton issues such as workers’ rights and labor protection, commissioners place greater value on the control of risks related to the work environment.
Strengthening the human resources field
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The report states that “a greater systematic and repetition is a pending challenge in the availability of these reports,” as there are still the majority of companies that indicate that report submission to their boards is handled by human resources. out exclusively on an annual basis. In addition, companies do not follow enough. risks associated with a lack of critical skills. Although this problem can cause serious problems in the implementation of the strategy and in achieving results, 34% of the members of the board of directors do not regularly audit this parameter in their companies.
And the retention of critical talent “is still not reflected in the frequency with which targets associated with these areas are considered in short- and medium-term variable compensation models.” In many cases, large companies More attention from SMEs to ESG and diversity related aspectssmall and medium-sized companies place more value on productivity.
Source: Informacion
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