Has your company selected a successor to be your next CFO?

Elon Musk dominates the daily news. It has been reported in the news recently that Elon Musk has identified a potential successor to take over as the next CEO of Tesla. 

This information came to light during a trial focused on Elon Musk’s 2018 pay package. Shareholders have filed a lawsuit to challenge the Board’s fiduciary duty in awarding that compensation package. 

This does not mean that Elon Musk plans to step aside as Tesla’s CEO any time soon. It is good corporate governance to identify successors to key roles such as the CEO. As important as current executives are to the success of any corporation, it is a good practice for the operation to have a transition plan ready in the event one is needed. 

Certainly, the CFO is one of the most strategic and critical executive roles to the success of any organization. Does your organization have a CFO succession plan in place?

Will an identified successor automatically earn the job? Usually no. Most likely, that person can take over the role on an interim basis immediately should the need arise. That provides the stakeholders dependent on the success of the firm with peace of mind, operational continuity, and a level of breathing room to conduct more in-depth interviews and executive searches to fill the position on a full-time basis. 

In addition to identifying successors to key roles in the event of an emergency, it is also a good practice to have a succession plan with ready executives that are being groomed for those key positions. This gives the company, the CEO, and the Board, a ready list of internal candidates they can be proactive in preparing to take these leadership positions in the future. 

Below are two recent articles that provide more information on this news announced at Tesla. 

Continue reading in Reuters 

Continue reading in Yahoo News

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