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Leaving the CEO role for new pastures is tough. Here’s how to get it right.

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A smoother CEO succession

In the news

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Expected exits. Executive search experts predict a surge in CEO departures at US companies after a relative lull over the past few years, as many top leaders have hung on to their positions during and after the COVID-19 pandemic. Chief executives were hoping to step down during a tranquil time and are exhausted from hitting a recent period of economic instability. The top job also got tougher during the pandemic as CEOs added operational responsibilities, and that extra work has taken a toll, experts say. [Fortune]

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CFO-to-CEO springboard. More CFOs than usual left their companies last year in the United States and Europe, particularly in the United Kingdom, according to executive search firms. Some of the turnover came as CFOs were elevated to the CEO role. In other cases, CFOs have been pushed out as their companies underperformed. [FT]

“It’s important to think about succession not just as replacing yourself but as leadership development for your team.”

On McKinsey.com

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Start early. Succession planning is crucial for CEOs, but it can get short shrift as leaders get caught up in the day-to-day grind, McKinsey senior partner Kurt Strovink shares in a recent episode of the podcast series Inside the Strategy Room. CEOs should think about who will succeed them from day one of their tenure, not because they’re itching to leave, but because it’s helpful to develop at least three potential internal candidates who can fill the CEO’s shoes, partner Blair Epstein says.

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Last 100 days. Departing CEOs should consider making a 100-day plan for the end of their tenure, allowing for a deft handover of both work and relationships to the new boss. Some CEOs choose to take a gap year or half year after stepping down, helping them “fend off the offers that they start getting right away and to double down on health, sleep, and relationships,” says senior partner Carolyn Dewar, coauthor of the bestselling book CEO Excellence. Learn what leading CEOs do when handing over the reins.

Ace the CEO transition

— Edited by Jana Zabkova, senior editor, New York

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Leaving the CEO role for new pastures is tough. Here’s how to get it right.

A smoother CEO succession

In the news

“It’s important to think about succession not just as replacing yourself but as leadership development for your team.”

On McKinsey.com