Global cybercrime damages are expected to exceed $6 trillion annually by 2021. From hacks of mobile payment and other non-traditional payment systems to data manipulation and sabotage, the external threats to operations and customer and investor perception seem to increase daily. We recently sat down with cybersecurity expert William S. Rogers Jr. of Prince Lobel Tye LLP, a Boston law firm whose attorneys handle matters of local, regional, national and international reach. Rogers, who is chair of the firm’s Data Privacy and Security Practice Group, discussed cybersecurity regulation and its impact on public and private companies.
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Strategic Messaging, Corporate Governance, Board of Directors, Reputation Management, Investor Relations, Cybersecurity, Investor Relations Trends, Corporate Communications, IR Compliance, crisis communication plan, cybersecurity communication plan, crisis preparation
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Corporate Governance, Investor Day, Crisis Communications, Analyst Day, Investor Relations, Corporate Communications, Transition Communication, Event Planning, Perception Study, crisis preparation, Employee Communications
When faced with a crisis, even senior IR executives can benefit from an outside perspective, particularly when that perspective is based on years of experience. In the following conversation, David Calusdian, president at Sharon Merrill Associates, discusses crisis management issues and the most effective strategies to protect corporate reputation and credibility.
Q: Can you share some recent examples of your crisis communications work, to give readers a sense of the many issues that can ensnare a public company, and discuss how you solve them?
A: Today the potential for a crisis lurks in any piece of market-moving information that originates from somewhere other than the company. It could be a social media post about an impending management shakeup, an FDA product recall or a data breach. The potential scenarios are endless, but an effective response shares a few common themes:
You probably have heard your CEO or a member of the board expound on the need to have a succession communications plan. (Perhaps you have been the one doing the expounding.) And it’s true: public companies should put significant thought into how they will communicate the transition of a C-level executive or board member. But usually, that’s where the conversation ends.
More often than not, communications professionals walk away from these discussions wondering what goes into the plan. With that in mind, today we discuss the five essential elements of a successful succession communications plan.
- Make the plan
As soon as you know your board is conducting a CEO search, create a detailed timeline that will keep your succession communications on track. Name each task with the target completion date and the name of the person or people responsible for implementation. List all the materials that are necessary for the
Note: This is the finale in our three-part series on succession communications.
As you’ve no doubt noticed from our previous posts on communicating CEO and CFO transitions, there’s no such thing as a “standard” executive announcement. And messaging board-level succession carries additional nuances you’ll need to consider as you frame a board change in the best position for long-term success with the investment community.
To assist in that effort, here are five points to guide you in announcing a change on your board.
1. Change is good. Change carries inherent uncertainty, and investors typically frown on that. However, institutional shareholders, and shareholder activists in particular, have emphasized board refreshment in recent years as a means of improving corporategovernance. Proxy advisers Glass Lewis and ISS also view it favorably. The theory here is that more frequent board turnover opens a company to new thinking and the best possible strategic benefits in the long run. Put another way, your board either can be stagnant or growing. Approach your announcement from a confident perspective, because chances are your shareholders will welcome the addition of new viewpoints.
Note: This is the second in our three-part series on succession communications.
A new CEO is the highest-profile personnel announcement a company can make, but a new CFO isn’t far behind. As with any executive transition, the reasons can vary widely – from termination to mutual separation to a legitimate retirement. Regardless of the rationale, however, you’ll need to negotiate a different set of questions when communicating a CFO transition.
Whether it’s the longtime CEO’s retirement or the recent hire’s sudden exit, communicating the transition of the top executive is one of the most critical messaging tasks a company can undertake. So let’s discuss them both: the transitions that are well-planned, thoughtful and strategic, and those that are likely to catch investors by surprise. Here are three things to remember before your company changes CEOs.