Last year, planned successions accounted for a record number of CEO departures across the globe, according to recently published data. As more CEOs are throwing in the towel than ever before, boards are working to start the succession process earlier, train more internal candidates and better define the profile of a new CEO. However, overlooked items in the succession planning process, including some executives' reluctance to take the CEO job, can still catch boards off guard, sources told Agenda.
"If you're not developing leaders against a spec of what you need in future ... then you're really behind the curve," said Peter Thies, managing director in Pearl Meyer’s leadership practice, who suggested that companies discuss plans formally at least once a year. "It's really important for the board, especially as you're nearing a succession decision, to have your own firsthand knowledge and experience with the candidates internally, and not just rely on what the incumbent CEO tells you about him or her," Thies said.