The Board's Role in CEO Transitions

April 2022

When it comes to setting an organization's course and the value that must be acquired during the hiring, development, performance management, and, if necessary, termination of the CEO, the role of boards cannot be overstated. As a result, boards must:

  • Conduct an ongoing assessment of what the organization requires from its CEO 

  • Support continuous efforts to develop and maintain a pipeline of top talent

  • Assist the CEO in their initial onboarding and strategy development

  • Conduct rigorous goal-setting and regular performance management reviews

  • Determine the appropriate time for the CEO to leave

  • Gain an understanding of pay philosophy reviews and employment contracts

The constant assessment of the existing CEO's abilities and performance concerning the demands of the business is crucial to planning for CEO transitions.  Partnering with the Institute of Corporate Directors (ICD), Hugessen and ICD’s panel of speakers address CEO performance management methods and associated compensation subjects.