CEO succession planning: An emerging challenge for boards of directors

Abstract

The article discusses aspects of chief executive officer (CEO) succession planning. Research indicates that CEO succession is a significant issue facing boards of directors. Firms often look for internal candidates to groom in an attempt to avoid the hassle of searching for a new CEO successor. To minimize the disruption created when a CEO departs unexpectedly an internal individual can be designated as the acting CEO. A corporate board's role in succession planning comprises several tasks. Once the succession planning process is completed the board should make sure any promises it has made are communicated to succeeding board leadership.