CEOs are lasting less and less time in their roles. And it is not always because they are failing.
Many things have changed today. Uncertainty, constant disruption, greater pressure for results from boards and investors and ongoing public scrutiny have made the CEO role more demanding and contributed to shorter CEO tenures.
CEO turnover is accelerating.
According to Russell Reynolds Associates’ “Global CEO Turnover Index,” 2025 marked a record number of CEO departures at publicly listed companies, with 234 cases, a 16% increase over the previous year.
The report also notes that “the average global CEO tenure fell to 7.1 years, down from 7.4 years in 2024, and 8.3 years in 2021,” while departures within the first three years rose significantly. This context makes succession planning critical.
Leadership transitions can occur for many reasons: a retirement agreed upon in advance, voluntary resignation, dismissal due to poor performance, ethical misconduct or strategic shifts in the industry.
In any case, departures always leave a gap, and without a solid succession plan, that gap can translate into loss of focus, internal uncertainty and reputational damage. With planning, by contrast, it can become an opportunity to redefine leadership and strengthen strategy.
Effective planning requires boards to think long-term.
That is why succession should be treated as an important issue as part of corporate governance, because it demonstrates responsibility and a long-term outlook.
This does not necessarily mean having a named candidate ready to step in, nor is it about searching for the best résumé. Renewal must be strategic and respond both to the company’s internal context and to the demands of the external environment.
An example of one transition that has so far proven successful is Apple’s. The company recently announced that its CEO, Tim Cook, will step down next September. The succession reflects a well‑designed process: Apple selected an internal successor with deep institutional knowledge, long regarded as a natural candidate, and whose appointment received unanimous board support. The transition was announced well in advance and without any signs of disruption.
CEO turnover may continue to rise. The difference will not lie in avoiding it but in how it is handled. Are boards prepared to ensure that leadership transitions do not disrupt strategy?
Here are six key points for successful succession planning.
1. Start with strategy before the candidate.
The first step is to define what kind of leadership will be needed in the coming years. CEO succession is not only about replacing a person but also about ensuring continuity of purpose and strategy. This requires reading the environment—from the rise of AI to regulatory or competitive changes—and translating that into concrete leadership capabilities.
That is why succession is not a static plan or something written in stone; it requires anticipation and constant updating as strategy evolves, external conditions change or new skills become necessary. The perspective must always be long-term.
2. Define the profile the organization needs, not the best CV.
The focus should not be on finding the most outstanding candidate but the most suitable one. Depending on the company’s moment, this may require continuity or a meaningful shift in capabilities, such as leadership in transformation, innovation or crisis management.
The key is to define precisely the competencies, experience and leadership attributes the CEO must have to perform the role effectively, considering the challenges the organization will face over the next five to 10 years.
3. Identify and develop internal talent.
Effective succession can begin long before the vacancy opens. It’s important for a board to ensure that leadership talent is being developed toward a potential successor. This means identifying possible successors early and exposing them to critical challenges to accelerate their preparation.
It is not about having one single candidate ready but rather a strong bench with several suitable options. This does not exclude external alternatives; on the contrary, it is advisable to have a plan that combines internal development with an open view of the market.
4. Integrate succession into governance.
An effective succession plan must be integrated into corporate governance. In this process, the board’s role is essential because it is responsible for reviewing, approving and periodically updating the plan.
In many countries, this process falls to a nominations committee, whose existence is considered a good practice and, in some cases, a legal requirement. Whether mandatory or not, it is advisable to have such a committee, since it helps ensure an objective, transparent succession process aligned with corporate strategy.
5. Formalize the plan and distinguish between scenarios.
The company should have a clear policy defining roles, responsibilities and procedures in the event of a CEO’s departure, clearly setting out the responsibilities of each party involved, such as the board, the nominations and compensation committee and the sitting CEO. It is also essential to distinguish between planned succession and emergency succession, since each requires different timing and decisions.
6. Ensure continuity and accelerate adaptation.
Succession does not end with the appointment; it opens a new stage. A good plan should define how the transition will be managed to ensure operational continuity, including clear communication, orderly handovers and protection of key decisions.
At the same time, the new CEO’s adaptation is a challenge in itself. Today, performance is expected from day one. That is why active board support during the first few months—in setting priorities, understanding organizational culture, strategy and the relationship with the board itself—is essential. Supporting the new CEO during the first years helps accelerate the learning curve and ensure long-term stability.
In today’s environment, leadership turnover is increasingly likely, so organizations must be prepared for different scenarios. Having a robust plan not only ensures strong leadership but also safeguards the continuity and success of an organization.
By Susana Sierra
Published in Forbes Business Council
