TWIB: How does a board choose a leader?

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February 9, 2014, 1:53 pm
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(NECN) –George Davis Jr., the global managing partner for Egon Zehnder, talked with NECN about how companies pick new leaders.

This comes as Microsoft has recently hired a new CEO, Satya Nadella. Davis says that there is a difference between the choice they made and the process they used to hire him.

“I think it was a safe choice. They said they’ve looked over 100 external candidates. When a board sits there and tries to evaluate what its next leader is, you also have to figure out what’s your next strategy, what it’s going to be. And clearly, the board must have deliberated that it must be so complex that they needed to take somebody from the inside,” Davis explained.

Meanwhile, Bill Gates has stepped down from his chairman role and will be a senior advisor.

“Well, I think they absolutely need him for some kind of vision. He’s a legend in the marketplace, but that may have also scared away some of the external possibilities,” Davis said. “If they look at it and they feel that, you know, grandfather is right over your shoulder, how is that going to play out?”

In addition, he shared exclusive new results of a global study on the lack of international diversity on corporate boards with global footprints.

Tags: Microsoft, TWIB, Bill Gates, This Week in Business , George Davis Jr., Egon Sehnder, SatyaNadella
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