CEO Succession Planning and Execution

With declines in CEO mean and median tenure in S&P 500 companies over the past decade, boards are encountering the challenges of the CEO transitions more frequently. While many experienced directors and governance experts believe that hiring and firing the CEO is the board’s most important function, few companies seem to get the process of CEO succession planning and execution right. What are the reasons for this disconnect? How do boards know when the time is right to look for a new CEO? What can directors do to maintain control over this process while still leveraging the expertise and judgment of the outgoing CEO? This session will offer advice for boards on how to conduct an efficient and intelligent search in light of data suggesting that the labor market for outstanding CEO talent is significantly tighter and more competitive than most experts realize. The panel will also explore strategies for succession planning and execution, including practices for growing internal CEO succession candidates, the importance of focusing on the development of the full executive team, the merits of giving preference to internal candidates over outside hires, and the ongoing efforts needed to help ensure the success of the newly placed CEO.