CEO Succession

For many boards, CEO succession planning has remained either non-existent or a perfunctory matter of having in mind an internal heir to the top job. But a poor choice of chief executive can have far-reaching effects on a company’s ability to create value; effects that can take years to correct. Making sure that CEO succession does not prove the critical weakness in an otherwise resilient organization calls for an equally resilient succession planning process made up of three essential elements: role specifi­cation, rigorous candidate assessment, and mapping the external talent market.

Changing a CEO is one of the most critical decisions for any organisation. Egon Zehnder International regularly advises boards on this complex decision making process and supports boards in making the right choice. We have learnt that the success of a CEO succession – whether an external or internal candidate is chosen – is closely linked to the effort that goes into planning for the event, often several years ahead and supporting the change after the appointment is made.