No, best practice strongly recommends against departing CEOs becoming board members upon leaving their position, for at least two reasons:
- Even the most seasoned professional will have a hard time separating management and governance, in this situation. Departing CEOs just have too much insider, management-level information.
- The presence of the former CEO might undermine the authority of the new CEO. It is hard enough coming into a new leadership situation and carving out your own style and path. Having the former leader present at every board meeting will make the transition more difficult—even if the former CEO has the best of intentions.
BoardOnTrack Recommends
Wait a minimum of two years before inviting a former CEO to serve on the board.
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