What Boards Want HR to Know About CEO Succession Planning

When CEO succession is done right, it doesn’t just prevent disaster... it builds a better company.

That’s the message at the heart of this detailed research study by the University of South Carolina and the HR Policy Association, based on interviews with board directors and investors of major companies across North America.

Here are some of the most valuable insights for HR professionals and Board leaders to keep in mind:

1. Succession planning is a business-critical process, not just a backup plan.

One of the clearest takeaways: succession isn’t about preparing for an emergency. It’s about shaping the future of the organization. When Boards treat it as an afterthought or compliance exercise, they miss a huge opportunity to influence long-term growth, strategy, and leadership culture.

2. CHROs are uniquely positioned to lead.

The CHRO’s role in succession is irreplaceable. They are the ones who truly understand the leadership pipeline, talent development, and company culture. But they need open, honest partnerships with the Board (especially the Chair and Compensation Committee) to provide frank assessments, manage egos, and keep the process objective.

3. CEO self-confidence can cloud judgment.

Many sitting CEOs overestimate the readiness of their 'heir apparent.' Even the most well-intentioned leaders often push for a successor who mirrors themselves, rather than someone suited for the company’s future. Boards must be willing to challenge this dynamic.

4. Boards need to invest more time.

Boards still aren’t dedicating enough time to succession. A rushed or reactive process weakens the outcome. Ongoing discussions, annual updates, and deep exposure to internal candidates through real business challenges are essential.

5. Assessment isn’t just about performance. Character matters.

The report emphasizes that succession evaluations should factor in more than just results. Resilience, adaptability, emotional intelligence, and humility all matter. And Boards need honest input about candidates’ blind spots and growth edges... not just their highlight reel.

6. The best succession plans are always active.

Succession isn’t a binder on a shelf. It’s a living, evolving plan. Leading organizations review and test their plans regularly, expose emerging talent to critical roles, and treat succession as part of broader leadership development.

Whether you’re supporting the Board as a CHRO or guiding executive transitions as an external partner, this report is a must-read. The insights are raw, real, and shaped by people who’ve been in the room.

View or download the full report here.

If you’re ready to strengthen your own succession strategy or support your Board in building one, get in touch with the Peoplebiz team. We’re here to help.