4 Realities of CEO Succession

The process of CEO succession planning can be a hard process, particularly for emergency succession – where a CEO suddenly is out of a job for whatever reason – bad health, bad performance or the CEO suddenly decides to take another job. Even orderly succession – where a CEO has planned their retirement – can be challenging.

The great CEOs understand they’re not indispensable. But the merely good – or downright bad – CEOs often don’t quite get that. So the board is swimming against the tide. It’s a sensitive area.

NYSE-listed companies are required to address their succession plans in their corporate governance guidelines. Nasdaq-listed companies aren’t required – but many do since this is a key board activity.

Here are 4 things you should know about CEO succession:

• Not that specific
• Benchmark to the extent you can
• Regular interaction between board & senior managers
• The CEO evaluation process counts

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