Tragic Lessons

WHEN IT COMES to succession planning, corpo­rate boards usually prepare for disaster by putting together what they call "the envelope," which contains instructions on who takes over if the chief executive is suddenly incapaci­tated. Rarely, however, do com­panies need to pull out these envelopes as frequently as Mc­Donald's recently has. One year ago this week, McDonald's CEO Jim Cantalupo, 60, died of a heart attack, and the board quickly named his deputy, Charlie Bell, to succeed him. Just weeks later, however, Bell was diagnosed with colon can­cer. He stayed in the job until November, but by January, Bell, 44, had died, too. The back-to-back deaths are making corporate boards pay closer attention to the health of the men and women they're considering for top jobs.

The goal: to hire healthier CEOs so the envelope never needs to be opened: Recruiter Stephen Mader of Christian & Timbers says many senior executives are already required to have an annual physical. But in reac­tion to the woes at McDonald's, Mader says, "I have seen insist­ence on documented evidence" of job candidates' health, such as a note from a physician. Re­cruiter Gerard Roche of Hei drick & Struggles says that while such requests are still in the minority, they're definitely increasing-and some boards are even asking that CEO.NEWSWEEK APRIL 25, 2005