CEO Succession Practices: 2012 Edition

CEO Succession Practices: 2012 Edition

Jason D. Schloetzer Georgetown University – McDonough School of Business

Matteo Tonello  The Conference Board, Inc.

Melissa Aguilar The Conference Board, Inc.

April 13, 2013

The Conference Board Research Report R-1492-12-RR

CEO Succession Practices: 2012 Edition documents and analyzes succession events of chief executive officers (CEOs) of S&P 500 companies. In addition to updates on historical trends, the study features discussions of the most notable cases of CEO succession that took place in 2011 (based on press announcements and other publicly available information) as well as the results of a survey of corporate secretaries and general counsel on the succession oversight practices of their boards (administered annually by The Conference Board). The study includes the following: Part I-CEO Succession Trends (2000–2011): Year-by-year succession rates; Part II-CEO Succession Practices (2011): Includes two sections, “Board Practices in CEO Succession Planning” and “Communication Practices in CEO Succession”; Part III-Notable Cases of CEO Succession (2011): Summaries of 10 episodes of CEO succession that made headlines in 2011 (Advanced Micro Devices; The AES Corporation; Apple; First Solar; Gannett Co.; Hewlett-Packard; H&R Block; Newell Rubbermaid; PG&E; and Yahoo); Part IV-Shareholder Activism on CEO Succession Planning (2011): Discusses a critical policy reversal by the U.S. Securities and Exchange Commission on the excludability of shareholder proposals in CEO succession policies (Hewlett-Packard; Kohl’s; News Corp; Red Robin Gourmet Burgers; United Natural Foods). Concluding the report is an appendix of The Conference Board Roadmap to CEO Succession Planning, which outlines a series of steps intended to help directors organize succession planning, integrate it with existing board responsibilities, make it transparent to all stakeholders, and ultimately define it as an ongoing element of business strategy.

India’s industrial dreams sputter

India’s industrial dreams sputter

There is an urgent need for manufacturing to expand to boost growth and create jobs. -ST
Krittivas Mukherjee
Sun, May 19, 2013
The Straits Times

NEW DELHI – A US$ 12 billion (S$15 billion) steel factory in eastern India was supposed to be the country’s biggest foreign investment, the symbol of a nation’s rush to become an industrial giant. Seven years on, the site is still a patch of sand with a few beat-up containers.

The steel mill that was to be built by South Korean giant Pos- co has been caught up in a drawn-out battle with villagers for land and for government environmental clearances. Thus it has become a symbol of all that needs to change if India is to become a global manufacturing hub.

India is expanding at its slowest in a decade. If it wants to revive lasting growth and absorb some 10 million Indians set to join the workforce annually over the next decade it must shift its economic engine towards manufacturing, industry and analysts say. Instead, factory output has steadily declined, underlining the challenge India faces in achieving its target of expanding manufacturing’s share of gross domestic product to a quarter by 2022 from about 15 per cent now. Read more of this post

China Development Bank Says $8.1 Trillion Needed for Urban Shift; China must urgently find special financing channels to support the urbanization process because local governments can’t afford the spending

China Development Bank Says $8.1 Trillion Needed for Urban Shift

China needs at least 50 trillion yuan ($8.1 trillion) in new investment by 2020 to accommodate a burgeoning population of city-dwellers, according to the president of China Development Bank.

China must urgently find special financing channels to support the urbanization process because local governments can’t afford the spending, Zheng Zhijie, the bank’s president, wrote in an article in the May 16 issue of China Finance, a journal run by the People’s Bank of China. Zheng didn’t elaborate on the estimate, which is about equal to the nation’s nominal gross domestic product in 2012.

The figure shows the extent to which China will need to come up with funds for roads and benefits as part of Premier Li Keqiang’s efforts to make urbanization a key engine of growth. China Development Bank, the world’s largest policy lender, created the the nation’s system of local financing for infrastructure projects. Read more of this post

Vietnam Says Economy at Great Risk of Macroeconomic Instability

Vietnam Says Economy at Great Risk of Macroeconomic Instability

Vietnam still faces “great risk” of macroeconomic instability, a deputy premier said, as credit growth trails behind targets while banks work to reduce elevated bad debt that has hampered growth. While Vietnam is targeting a 12 percent expansion in credit this year, local businesses are facing difficulties getting loans, Deputy Prime Minister Nguyen Xuan Phuc told the National Assembly in Hanoi today. Credit grew about 2 percent in the first four months of the year, the government said last week. The economy expanded 5.03 percent last year, the slowest pace since 1999, and the International Monetary Fund last month cut this year’s forecast to 5.2 percent from 5.8 percent. Lending grew last year by what the World Bank described as an “anemic” 9 percent, and while the central bank has cut policy rates, its attempts to spur growth have been countered by delays in forming a vehicle to address bad debt.

Read more of this post

‘Love Hormone’ Promises Safer Births After Pfizer Flop

‘Love Hormone’ Promises Safer Births After Pfizer Flop

A hormone treatment based on technology used in Pfizer Inc. (PFE)’s failed inhalable insulin shows promise in fighting the leading cause of maternal mortality.

Six years after Pfizer pulled Exubera from the market at a cost of more than $2.8 billion, scientists at Melbourne’s Monash University are revisiting the inhalable technology to deliver a life-saving medicine to stop post-delivery hemorrhage.

The Bill & Melinda Gates Foundation is backing the effort to produce a better way to give oxytocin, a brain chemical that helps the uterus contract after birth and is sometimes referred to as the “love hormone” because of its role in orgasm and bonding. The project is one of several testing inhalations to deliver medicines, salvaging the know-how of a product that was taken off the market after just 14 months of lackluster sales.

“Exubera was the first generation,” said John Patton, one of the original inventors of Pfizer’s inhaled insulin technology system. “When you’re first, you take a lot of bullets. With the developments in the industry, it’s just a matter of time before we will be inhaling lots of medicine.”

The lead scientist for the Monash project, Michelle McIntosh, says her group plans to start testing a dry-powdered form of oxytocin by early 2014. Patton’s company Dance Biopharm Inc., is working on an inhaled insulin, as is Mannkind Corp. (MNKD), the biotech company founded by billionaire investor Alfred Mann. Read more of this post

“Whiskey is for drinking, and water is for fighting.”: The fight for North Dakota’s fracking-water market

Insight: The fight for North Dakota’s fracking-water market

12:48am EDT

By Ernest Scheyder

WATFORD CITY, North Dakota (Reuters) – In towns across North Dakota, the wellhead of the North American energy boom, the locals have taken to quoting the adage: “Whiskey is for drinking, and water is for fighting.”

It’s not that they lack water, like Texas and California. They are swimming in it, and it is free for the taking. Yet as the state’s Bakken shale fields have grown, so has the fight over who has the right to tap into the multimillion-dollar market to supply water to the energy sector.

North Dakota now accounts for over 10 percent of U.S. energy output, and production could double over the next decade. The state draws water from the Missouri River and aquifers for its hydraulic fracturing, the process also known as fracking and the key that has unlocked America’s abundant shale deposits. The process is water-intensive and requires more than 2 million gallons of water per well, equal to baths for some 40,000 people. Read more of this post

Amid frenzy over map apps, new focus on 16th century world view

Amid frenzy over map apps, new focus on 16th century world view

Sat, May 18 2013

By Deborah Zabarenko

Conservators at the Library of Congress prepare a map for its encasement in Washington

WASHINGTON (Reuters) – As online titans compete to deliver instant maps to smartphones, the Library of Congress in Washington is focusing attention on an antique “cosmology” printed in 1507 that serves as America’s birth certificate.

The black-and-white map created by Martin Waldseemuller, a French cleric, was the first time the name America had appeared on any map.

Waldseemuller was prescient enough to show the Rocky Mountains and the Pacific Ocean at a time when no one else in Europe thought they were there.

The map, purchased a decade ago at a cost of $10 million, is the centerpiece of an exhibit at the Library of Congress running through June 22 that features a collection of artifacts from Waldseemuller and his colleagues. Read more of this post

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