“Do any other companies restrict employees from dealing on the day of announcement of preliminary and half-year results so that close periods end the day after?
Also, are employees required to separately acknowledge that they understand the insider dealing requirements when added to a ‘project list’ even if they have acknowledged for being on the main insider list?”
It is critical that the CEO participates in the process – he or she must be able to work with the incoming chairman. We changed chair at the AGM this year, with the process having been conducted last year. The CEO was involved in the process of assessing candidates, as were the EDs and the Co Sec. The SID chaired the Noms Com, with the outgoing Chair playing no part whatsoever.
In our case the process was led by the senior NED who was not a candidate for selection (the SID was) who formed a Selection Panel from the non conflicted NEDs on NomCo. He engaged an external search firm to assist and they took the views of the CEO on the potential candidates and reflected them back to the NomCo Panel. It was considered to be very important that the CEO felt he could have a good working relationship with the new Chairman but without unduly influencing the decision.
Yes. The process was led by the Senior Independent Director, who I recall sought the perspective of the CEO. In my view, a good SID will ensure that the relationship between Chairman and CEO will work (at least at the outset) so will need to engage with the CEO.