CEO Successions: Should CEOs Choose Their Successor?

CEO Succession: Should CEOs Choose Their Successor?

Leadership transitions fascinate me. Following our recent discussion about internal candidates in CEO succession, I would like to address another interesting aspect: What role should the incumbent CEO play in selecting their successor?

What role should the incumbent CEO play in selecting their successor?

After diving deep into this question, here's what strikes me as the elegant complexity of the situation: The reality is nuanced. While boards ultimately hold the reins on succession (it's literally their #1 job), there's something powerful about a CEO's intimate knowledge of what the role truly demands. But: The very person who knows the job best might not be the best person to choose who comes next.

The very person who knows the job best might not be the best person to choose who comes next.

The Value of CEO Insight

Think about it - your incumbent CEO sees the daily challenges, the political landscapes, and those "everyday crises" that never reach the boardroom. That knowledge is invaluable.

Proactive Talent Development

But here's where it gets interesting (and where my previous point about early planning becomes even more relevant): The best CEOs I've worked with don't wait to be asked about succession. They're actively developing their bench, giving potential successors those challenging assignments and board exposures we discussed.

The Partnership Model

However - and this is crucial - they do this while fully accepting that the final choice isn't theirs. The most effective CEO-board relationships I've seen treat succession as a partnership where:

• The CEO focuses on developing talent and providing insights, succession planning being part of his/her job from day one

• The board maintains decision-making authority while leveraging the CEO's unique perspective

• Both parties start this cooperation on day one, not in crisis mode

Building a Lasting Legacy

Remember my earlier point about waiting too long? It applies here too. The best succession processes aren't just early - they're collaborative, with clear roles and boundaries. That's why this balance between CEO input and board oversight matters so much. And this is an opportunity to build a lasting legacy of leadership that will outlive any individual CEO's tenure.

CEOs bring invaluable insights to succession planning, but boards must maintain final decision authority.

For those interested in the scientific background on risks involved in CEOs choosing their successors, there's extensive research available with compelling data on this topic.

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ABOUT THE AUTHOR

• Marion Heil is the founder and managing director of Board+CEO Advisors. She is based in Vienna.