Shareholder Activists Target Succession Planning

Boards have grappled for more than a decade with shareholder proposals on CEO compensation, but shareholder proposals on CEO succession planning are something new. They first appeared in 2007 when the Laborers' International Union of America (LiUNA) filed them at six U.S. companies. Initially, the Securities & Exchange Commission allowed companies to omit these proposals on the basis that succession planning fell within the ambit of a company's "ordinary business."

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