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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.
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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 |