Fenwick's "A Senior Executive Is Seriously Ill. When Should a Company Disclose the News?" is a much-needed primer on a company's disclosure obligations relating to a CEO's (or other key leader's) serious illness or health issue. The article discusses the relevant laws, disclosure standards, and multiple other considerations to public disclosure of a CEO illness/health concern and the three disclosure approaches companies have taken historically (supported by well-known examples), and imparts sound best practice guidance associated with each approach to mitigate the risks of disclosure (or non-disclosure) liability. Sound internal communication and reporting practices for the CEO, board, and management team are also addressed.
Access additional information & resources on our Risk Management & Oversight, CEO Succession, and Form 8-K pages. This post first appeared in the weekly Society Alert!