Why the Future of CEO Succession Hinges on Optionality—And What Boards Must Do Now
By Nexus Search Partners
CEO succession is one of the most critical decisions a board will ever make. Yet, according to a new study published by Harvard Law’s Forum on Corporate Governance, too many boards still lack the foresight and infrastructure to ensure smooth, strategic transitions. For firms operating in today’s fast-moving business environment—particularly those in private equity and high-growth sectors—this isn’t just a governance gap; it’s a growth risk.
At Nexus Search Partners, we’ve long advocated for a more intentional, future-focused approach to leadership planning. This new study only reinforces what we’ve seen firsthand: CEO succession should be a strategic lever, not a reactive event.
The Cost of Under-Preparedness
The 2025 Global Board Culture and Director Behavior study reveals a troubling stat: nearly half of board directors are not confident in their emergency CEO succession plan. Even fewer—just 8%—are planning their succession horizon more than five years out.
Let’s be clear: in a landscape defined by disruption, that’s not just short-sighted, it’s risky. With record turnover at the C-suite level and more than 60% of executives actively exploring new opportunities, boards need to build in resilience—not just readiness.
It’s Time to Optimize for Optionality
The study introduces a powerful concept that resonates deeply with our philosophy at Nexus: optionality. When boards cultivate a broader, deeper bench of potential leaders, they gain the agility to make informed, confident decisions—whether facing a planned transition or a sudden emergency.
Optionality doesn’t just mean having names on a list. It means investing in internal development, taking a hard look at the full C-suite pipeline, and, critically, ensuring that emerging leaders from all backgrounds have real access to opportunities.
At Nexus, our Human Capital focus helps our clients shift from traditional models to a future-forward framework: one that combines rigorous talent assessment with strategic coaching, cultural alignment, and scenario planning that looks years—not quarters—ahead.
From Succession to Progression
A standout insight from the Harvard Law study is the need to foster a culture of progression, not just succession. That mindset shift—from “who’s next” to “who’s growing”—is key to building not only continuity but also innovation.
We’ve seen it across our client base: organizations that prioritize leadership development early, provide candid feedback, and invest in executive coaching don't just fill roles faster—they thrive. Why? Because their pipelines reflect not only capability but readiness. And because those pipelines are inclusive, robust, and aligned with the long-term strategy.
Nexus’ View: What Boards Should Do Now
Drawing on the report’s findings and our own advisory experience, here’s what leading boards should be doing now:
Elevate succession to a standing board priority. Don’t wait for transitions to trigger action. Make CEO succession—and broader C-suite development—a regular part of your governance rhythm.
Demand a five-year plan (or longer). Challenge your teams to develop multi-year succession roadmaps that include scenario planning and key leadership capabilities tied to your strategic vision.
Embrace internal development with external rigor. Treat internal candidates to the same level of scrutiny, support, and opportunity as externals. The goal isn’t to promote from within—it’s to choose the best leader, with the full picture in view.
Create real access. The best candidates may not look like the last CEO. Boards must ensure their pipelines reflect the full range of talent—especially those whose unique lived experiences bring fresh insight and cultural add.
Leverage partners who understand complexity. Whether you’re preparing for IPO, navigating PE transitions, or scaling for growth, your succession strategy needs more than intuition. It needs insight, structure, and a trusted partner.
Let’s Find the Right Leader for Your Organization
Are you ready to find leaders who will transform your organization? Contact Nexus Search Partners today to learn more about our unique approach to executive search and leadership advisory.