Two-thirds of US public and private companies still admit that they have no formal CEO succession plan in place, according to a survey conducted by the National Association of Corporate Directors last year.1 And only one-third of the executives who told headhunter Korn Ferry this year that their companies do have such a program were satisfied with the outcome. These figures are alarming. CEO succession planning is a critical process that many companies either neglect or get wrong. While choosing a CEO is unambiguously the board’s responsibility, the incumbent CEO has a critical leadership role to play in preparing and developing candidates—just as any manager worth his or her salt will worry about grooming a successor.
