When sitting CEOs are getting ready to move on, succession considerations often involve both internal and external candidates… When a company chooses an external CEO candidate, "it's always tough" for directors to then retain and motivate internal talent that has been passed over for the role…
Such a scenario can lead to new choices in terms of compensation, specifically whether candidates who weren't selected and have valuable insight and knowledge about the company should receive special retention awards, said Dan Moynihan, managing director at Pearl Meyer. "For a new CEO, the last thing you want is to show up and have key members of your team leaving while you're trying to be successful as fast as possible," Moynihan explained.
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