The passing of Bed Bath & Beyond CFO Gustavo Arnal on Friday, which the retailer announced on Sunday, puts the business in another crisis. According to Reuters, the chief financial officer died on Friday after falling from the “Jenga” tower in New York’s Tribeca neighborhood.
NBC News reported that Arnal, 52, passed away “days after the retail chain announced it would close about 150 of its more than 700 namesake stores and lay off about 20% of its 32,000 employees after its stock fell more than 21% last Wednesday and 65% in the past year, according to The Associated Press. Follow Our website satiknews.com for the latest updates.
Statement By Board Of Directors
As the independent chair of the Bed Bath & Beyond Inc. board of directors, Harriet Edelman said in a statement, “I wish to extend our sincere condolences to Gustavo’s family. Gustavo will be remembered for all he worked with for his leadership, talent, and stewardship of our Company. I am proud to have been his colleague, and he will truly be missed by all of us at Bed Bath & Beyond and everyone who had the pleasure of knowing him.
Few Companies Have Succession Plans In Place
The untimely passing of senior corporate executives, which can cause a crisis for businesses and organizations, emphasizes the necessity of succession plans, policies, and procedures, as well as the significance of including such events in crisis management plans.
When employees don’t see opportunities for job advancement, they may leave some firms because they aren’t even informed that they are the successors. The technique becomes much more helpful when a senior executive passes away abruptly. It puts pressure on HR and top leaders to rapidly fill the position, according to Rymasha.
According to Catherine Rymsha, a visiting lecturer in management at the University of Massachusetts Lowell, “One firm I deal with used to plan for execs primarily for emergencies, without any regard for preparedness of successors.”
No Good Reason
“There is no compelling justification to excuse the widespread error of failing to plan for business succession. Some corporate executives are excessively preoccupied with today’s problems. Some people subconsciously dislike the idea that they won’t live forever, or they believe succession will occur organically, according to Deloitte.
When employees don’t see opportunities for job advancement, they may leave some firms because they aren’t even informed that they are the successors. The technique becomes much more helpful when a senior executive passes away abruptly. It puts pressure on HR and top leaders to rapidly fill the position, according to Rymasha. For the latest news, follow us on Google News.
Preoccupied With Other Issues
But if you’re not thinking about it right now, you might need a wake-up call, especially in the very competitive job market of today. For unprepared businesses, everything points to a hiring desert. Although some businesses are late to the party, it’s still not too late. Boards can take action right away to make sure that their plans are equipped to handle future problems, according to the post.
According to a post on the Harvard Law School forum on corporate governance last month, “Understandably, many companies have been preoccupied with the major economic disruption in the market and may not have invested the time or leveraged the expertise of their board members to focus on effective CEO succession planning.”