In 2024, CEO departures reached record highs—and 2025 is continuing the trend (Global CEO Turnover Index). From retirement and burnout to bold strategic pivots, boards are navigating increasing leadership turnover. In addition, the average CEO tenure dropped from 8.1 to 6.8 years by Q1 2025 and Canada’s CEO turnover remains elevated: 10–15% exit annually (CEO Transitions in Canada).
The risks are real—but so is the opportunity. CEO succession and recruitment aren’t just contingency plans—they're growth strategies. When boards and executive teams approach transitions intentionally, they create the conditions for transformation and stability.
What should CEOs and boards be thinking about now?
1. Look ahead, not just around.
Succession planning should start long before the first signs of transitions.
• Is your board having regular, honest conversations about the CEO’s expected timeline and aspirations?
• When looking at the leadership bench, are you evaluating the leadership competencies, experience and skills required for the future?
• Are you scanning for the capabilities needed next, not just replacing who’s there now?
Boards that wait until a CEO signals retirement, or unexpectedly departs, often find themselves scrambling with few viable internal options.
2. Consider the broader leadership pipeline.
Your leadership bench shouldn’t stop at the C-suite.
• Do you know who your true high-potential leaders are, two or three levels down?
• Are you giving them stretch opportunities, exposure to the board, and the development they need to step up when the time comes?
Building a sustainable pipeline lifts performance at all levels.
3. Be honest about internal vs. external alignment.
Sometimes the best next CEO is already in your organization. Sometimes you need a fresh perspective or different type of leader to navigate organizational transformation or new strategic goals.
• How does your current leadership align with your future strategic direction?
• Do you have the diversity of experience, ideas, and backgrounds to reflect your constituents, partners, customers etc.?
• If your internal pipeline isn’t deep enough, do you have a search partner ready to access new networks?
4. Don’t under-estimate transition dynamics.
The moment of handover can make or break the success of a new CEO and impact culture.
• Have you considered the readiness of an outgoing CEO to fully let go?
• Do you have a clear onboarding plan that helps the new leader build trust quickly, both internally and externally?
• Are you communicating clearly with employees, partners, and shareholders to maintain confidence during the transition?
At Royer Thompson, we help boards turn CEO transitions into defining moments.
Whether it’s planned or unexpected, leadership change is inevitable—but with the right strategy, it can be a catalyst for growth. Succession and search are two sides of the same coin—and we’re here to help you get both right.
We partner with boards and CEOs to:
• Identify and assess internal and external successor candidates
• Build intentional, future-focused succession frameworks
• Recruit diverse leaders aligned with your values and strategy
• Balance emotional readiness with structured, high-impact onboarding
• Ensure smooth, well-communicated transitions that sustain momentum
What you do now shapes who leads next.
Would you like to benchmark your organization’s succession readiness—or explore how leading organizations are approaching CEO recruitment in this climate of change?
Let’s talk!
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