CEO Succession—The Most Important Decision Your Board Will Make

Abstract

Perhaps no aspect of the CEO and board relationship has undergone more dramatic change over the past decade than CEO succession planning. In years gone by, CEO succession was driven almost entirely by the CEO, with fairly minimal board involvement. Boards rarely challenged the CEO’s selection of a successor, and they typically ratified that choice with minimal debate, taking the view: “The CEO knows the job and knows his people better than the board ever will. Why would we seek to interfere with the CEO’s recommendation?”