CEO Succession: What Boards Need to Get Right | Karen Francis DeGolia & Penny Herscher

CEO succession functions as a critical, ongoing board responsibility that requires proactive management rather than reactive crisis planning. Boards must treat leadership transitions as a continuous process, evaluating internal talent through P&L exposure and development while simultaneously mapping external candidates. Effective governance demands that board chairs build high-trust relationships with CEOs to mitigate the emotional and ego-driven friction often associated with leadership changes. Contextual factors—such as founder dominance in venture-backed firms, private equity hold periods, and activist pressure—significantly complicate these transitions. In an era of rapid technological change and AI integration, boards should prioritize CEOs who demonstrate intellectual curiosity and adaptability over those relying on static, traditional expertise. This strategic approach ensures companies remain resilient against market volatility and evolving operational requirements.