The CEO succession planning practices of top-performing boards

Planning for a company’s next leader has always been one of the board’s most critical responsibilities, and recent trends make it more important than ever. CEO turnover for the S&P 500 increased in 2025, and activist investors launched more campaigns last year than ever before, leading to a record number of CEO resignations in the US. Yet boards may still be caught unprepared when leadership change becomes necessary. One reason? Some directors find succession planning discussions uncomfortable, as they could signal a lack of confidence in the current CEO.

That hesitancy is no longer viable. Boards must look further ahead and be ready well before a transition is necessary. A recent publication from PwC’s Governance Insights Center discusses leading board practices in CEO succession planning. Here are three highlights:

Clearly define ownership and accountability for the process. Many boards design the compensation committee or nominating/governance committee to lead succession work, while others establish an ad hoc committee for periods of transition. Regardless of the structure, boards should be explicit about ownership and accountability.

Maintain plans for expected and unexpected transitions. The succession plan should be a living governance document, not a static file. It typically outlines the future CEO’s success profile and the board’s view of internal and external candidate readiness. The plan often includes a high-level CEO transition roadmap for planned changeovers, along with one or more interim candidates—often the CFO, COO, or another senior executive—who can step in immediately in an emergency.

Start succession planning from day one of a new CEO’s tenure. After appointing and onboarding a new CEO, many boards are reluctant to revisit the topic of succession planning. Top boards move past this hesitation by treating succession as an ongoing governance responsibility, grounded in open communication and mutual transparency with the CEO. Normalizing these conversations from day one is critical in building trust, reducing anxiety, and reinforcing the notion that succession planning is about continuity and resilience, not individual tenure.