OfficeMax may also be trying to sharpen its succession plan following the late-July departure of its chief operating officer. Earlier this year, current CEO Sam Duncan announced his plan to retire in February 2011, and Besanko and Vero could reasonably be considered to be among the top current candidates.
Whatever the reason, however, OfficeMax board members would do well to remember that retention awards may have only limited effectiveness in actually keeping someone on board. "The fact that someone has taken it doesn't mean they are staying," notes Adams, and "may actually just increase someone else's cost to buy out the executive."
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