Most people prefer to avoid contemplating the replacement in their role, especially just after they have been appointed to that position. This is exactly the reason that a company’s Board of Directors plays a pivotal role in the CEO succession planning process. It is also why that process should start soon after the appointment of a new CEO or other key executive. Ensuring that there are identified, qualified, prepared successors for the CEO and his or her key team members, and that there is a well-defined plan for those transitions, is an important part of the Board’s governance responsibilities. 

DISCLAIMER: The information in this article is not meant to provide any legal, tax/accounting or investment advice. Please consult with your own investment, tax, and legal advisor.