An ESOP company should ideally start CEO succession planning four to five years before the expected transition. Starting early gives the board and current CEO time to clarify the company’s future strategy, assess internal leadership potential, develop successors, evaluate the senior leadership team, and determine whether an external executive search may be needed.
Strategic Talent Partners’ ESOP CEO Transition Roadmap™ outlines a multi-year process that includes board development, strategy discussions, future-state organizational planning, CEO profile development, senior leadership team evaluation, successor development, executive search, hiring, onboarding, and integration. While four to five years is ideal, it is never too late for an ESOP company to begin planning a thoughtful CEO transition.
