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Directorship Magazine / How to Close the CEO Succession Readiness Gap

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How to Close the CEO Succession Readiness Gap

By Jeff Rosenthal

03/04/2026

CEO Succession Strategy Member-Only
Key Points

  • Many boards lack confidence in internal CEO candidates due to insufficient talent visibility.

  • Directors often take a reactive approach to CEO succession, engaging only when a transition is imminent, which leaves them without strong internal options when change is needed.

  • Effective succession planning requires future-focused role definitions, data-driven candidate evaluations, meaningful developmental opportunities, and intentional board-level exposure to candidates.

This AI-generated summary, based on content on this page, was reviewed by NACD editors for accuracy.

Boards repeatedly overlook internal CEO successors despite evidence they outperform external hires. Here's how directors can strengthen their internal candidate pipelines.

In my years advising boards and executive teams, one pattern has emerged repeatedly: Boards know internal CEO successors outperform external hires when it comes to culture, continuity, and staying power, yet often believe that no one within the company is truly ready for the role, leading them to hire externally. It is the classic readiness gap—and it is getting more pronounced.

CEO turnover is accelerating, and interim appointments are ...

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Robert Peak

 

 

Jeff Rosenthal is the cofounder and co-CEO of ProjectNext Leadership. 

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