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Board leadership and governance for clear-sighted CEO succession at Air New Zealand

Published online by Cambridge University Press:  15 June 2018

Monique Cikaliuk ,
Ljiljana Eraković ,
Brad Jackson ,
Chris Noonan  and
Susan Watson
Monique Cikaliuk
Affiliation:
Department of Management and International Business, The University of Auckland Business School, Auckland, New Zealand
Ljiljana Eraković*
Affiliation:
Department of Management and International Business, The University of Auckland Business School, Auckland, New Zealand
Brad Jackson
Affiliation:
Department of International Business and Asian Studies, Griffith Business School, Brisbane, Australia
Chris Noonan
Affiliation:
The University of Auckland Law School, Auckland, New Zealand
Susan Watson
Affiliation:
The University of Auckland Law School, Auckland, New Zealand
*
Corresponding author: l.erakovic@auckland.ac.nz
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Abstract

In this case study we address the issue of CEO succession drawing directly on the experience of the board of directors of Air New Zealand. Despite extensive literature on CEO-board relations, there has been a scarce number of studies on managing the processes of CEO succession and appointment from the board perspective. Drawing on documentary sources as well as in-depth interviews with all board members and CEOs appointed in the period 2002–2013, we shed light on this important governance process primarily for teaching purposes. We emphasise the board’s role in the context of the transformation of the airline into an award-winning, financially performing company in a highly competitive and mature industry. The case study examines how the board developed, implemented, and managed a succession process for three CEOs that was sound in design and achieved its desired benefits. By focusing on board leadership and board processes our case study provides evidence that independent boards can shape a specific combination of governance practices which contribute to successful CEO transitions.

Keywords

CEO successionboard of directorsboard leadershipNew Zealandcase study
Type
Case Study
Information
Journal of Management & Organization , Volume 26 , Issue 5 , September 2020 , pp. 774 - 797
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2018

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Footnotes

This case was written with the cooperation of the Air New Zealand board solely for the purpose of stimulating class discussion. All data contained in the case are based on field research and public sources. The research underpinning this case study included in-depth interviews with all board members and CEOs appointed in the period 2002–2013. The case is not intended to be used as illustration of either effective or ineffective handling of a managerial situation.

References

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