Succession Planning Insights

49 #FMCG CEOs have already exited their roles in 2025. The number feels high until you zoom out and see the full picture: 1,504 CEO departures across industries through August, the highest on record since tracking began in 2002. For consumer goods companies, this isn’t just a headline. It’s a warning signal. I spend my days speaking with boards, founders, and C-suite leaders, and the same theme keeps coming up: “Our succession plan looks fine… until it suddenly doesn’t.” Here’s the real tension I’m seeing in FMCG right now: 45 of the top 50 CPG companies promote CEOs from within, yet many emerging leaders haven’t had true C-suite exposure. Meanwhile, the pool of external candidates who understand global FMCG, PE pressure, omni-channel complexity, and category dynamics is getting smaller, not bigger. So companies are facing a perfect storm: • More exits • Shorter tenures (7.4 years on average at departure) • A younger cohort of CEOs (23 of 50 leading CPG CEOs have <3 years in role) • And leadership pipelines that aren’t keeping pace with business transformation The organizations navigating this moment well have one thing in common. They’re not reacting to turnover. They’re preparing for it. They’re giving high-potential leaders real P&L exposure before they “need” it. They’re pairing emerging commercial leaders with mentors who sit two levels above them. They’re treating succession like a strategic asset, not a board-meeting agenda item. And yes, they’re partnering with specialized search firms who understand how FMCG talent actually moves, not just how it looks on paper. The next leadership transition is always closer than it seems. If you’re leading a team today, ask yourself: Do you have a bench of ready-now successors, or are you relying on hope and tenure to hold things together? It’s a good moment for boards to look honestly at their pipelines, before turnover makes the decision for them. #ceo #cpg #fmcg #ceoexits

Few boards have a well-defined process for Chair succession. Even in high-performing boards, 𝐥𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐨𝐟𝐭𝐞𝐧 𝐡𝐚𝐩𝐩𝐞𝐧 𝐫𝐞𝐚𝐜𝐭𝐢𝐯𝐞𝐥𝐲, prompted by a resignation, retirement or term limit rather than as part of a deliberate governance process. 𝐘𝐞𝐭, 𝐣𝐮𝐬𝐭 𝐥𝐢𝐤𝐞 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐨𝐫 𝐫𝐢𝐬𝐤 𝐨𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭, 𝐬𝐮𝐜𝐜𝐞𝐬𝐬𝐢𝐨𝐧 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐢𝐬 𝐚 𝐟𝐢𝐝𝐮𝐜𝐢𝐚𝐫𝐲 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲. It’s what ensures continuity and confidence in leadership when change inevitably comes. Having recently gone through a Chair transition myself, I was reminded of how important it is to plan the passing of the baton. 𝐌𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐬𝐢𝐦𝐩𝐥𝐲 𝐟𝐢𝐥𝐥𝐢𝐧𝐠 𝐚𝐧 𝐞𝐦𝐩𝐭𝐲 𝐬𝐞𝐚𝐭, 𝐥𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐫𝐞𝐧𝐞𝐰𝐚𝐥 𝐩𝐫𝐞𝐬𝐞𝐫𝐯𝐞𝐬 𝐭𝐡𝐞 𝐫𝐡𝐲𝐭𝐡𝐦 𝐚𝐧𝐝 𝐩𝐮𝐫𝐩𝐨𝐬𝐞 𝐭𝐡𝐚𝐭 𝐠𝐢𝐯𝐞 𝐚 𝐛𝐨𝐚𝐫𝐝 𝐢𝐭𝐬 𝐬𝐭𝐫𝐞𝐧𝐠𝐭𝐡. Here’s a framework I’ve found helpful for thinking about board leadership transitions more deliberately: 1. 𝐃𝐞𝐟𝐢𝐧𝐞 𝐭𝐡𝐞 𝐫𝐨𝐥𝐞 𝐞𝐚𝐫𝐥𝐲. If the conversation starts when a vacancy appears, it’s already too late. Defining the role and ideal profile early helps the board align around expectations. What kind of leader does the organization need at this stage of its journey? What balance of independence, influence, and institutional memory will strengthen oversight? 2. 𝐅𝐨𝐫𝐦𝐚𝐥𝐢𝐳𝐞 𝐭𝐡𝐞 𝐩𝐫𝐨𝐜𝐞𝐬𝐬. Good governance requires clarity. Whose responsibility is it? The Nomination Committee, a dedicated Succession Committee or the Chair? How should potential candidates be exposed to the board’s dynamics? Formalizing these steps ensures consistency when the moment arrives. 3. 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐰𝐢𝐭𝐡 𝐩𝐮𝐫𝐩𝐨𝐬𝐞. Boards often default to seniority or rotation, but longevity doesn’t always mean fit. The decision should reflect the company’s current needs and direction, not tenure alone. Benchmarking candidates against the defined role brings objectivity and alignment. 4. 𝐄𝐧𝐠𝐚𝐠𝐞 𝐭𝐡𝐞 𝐂𝐄𝐎. The Chair–CEO relationship is among the most pivotal in governance. Involving the CEO early helps ensure alignment and chemistry, fostering a productive partnership from day one. 5. 𝐏𝐥𝐚𝐧 𝐭𝐡𝐞 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧. Even the most seasoned director faces a learning curve when stepping into the Chair role. Structured onboarding, through shadowing, joint meetings and mentorship from the outgoing Chair, helps transfer both knowledge and culture. Ultimately, good governance is as much about oversight as it is about renewal. So it’s worth asking: Do the boards you are part of plan for leadership succession as deliberately as they plan for strategy and performance?

The first thing that hit me when I joined this mid-sized engineering company as a CHRO was the lack of structured #SuccessionPlanning. At an organizational growth rate as steep as it was, the importance of a robust #SuccessionStrategy to keep our growth momentum on track and ensure continuity in leadership was very clear. To this end, I initiated my work with a critical review of our current leadership structure, #TalentPools, and future organizational requirements. I met senior leaders and key #stakeholders to identify critical roles for which #SuccessionPlans should be developed. This review identified several gaps and potential risks. Some of the huge barriers were #ResistanceToChange. To many senior leaders, succession planning was an unnecessary complication rather than a strategic necessity. Secondly, our #TalentManagementSystem lacked the necessary analytics to effectively predict and plan for the #leadership needs of the future. The next challenge in the process was to make the process inclusive and unbiased. We did not only need a system that would identify the #FutureLeaders, but one that would also be fair and transparent in the development of their capacity. Knowing these challenges, we established a comprehensive #SuccessionPlanningFramework that includes both quantitative and qualitative tools. #TalentAssessmentTools: We used #PsychometricAssessments, performance reviews, and 360-degree feedback to assess the current leader in finding a successor. Tools like #HoganAssessments and #GallupStrengthsFinder helped us truly understand individual capabilities and suitability for future roles. #LeadershipDevelopmentPrograms: Based on assessment results, customized development programs for potential successors have been designed. This includes #mentorship, #coaching, and focused training sessions to get over the shortcomings in competencies and groom them for the leadership role. #SuccessionPlanningSoftware: We implemented succession planning software in the HR system— #SAPSuccessFactors and #CornerstoneOnDemand. These tools enabled us to track potential successors, review development progress, and evaluate succession readiness. It runs scenario planning and #SuccessionModeling to simulate organizational changes and what would be affected in such scenarios. Our succession planning strategy, therefore, bore its first benefit: a strong #LeadershipPipeline ready for the challenges ahead and improved employee engagement through clear career pathways. It also enhanced the organizational agility required for smoother transitions. Our organization is more resilient, with a strategic approach toward developing leaders that places us in good stead for the future. #CHRODiaries #SuccessionPlanning #LeadershipPipeline #HighPotentialEmployees #PerformanceAssessment #360DegreeFeedback #ChangeManagement #CareerProgression #EmployeeEngagement #StakeholderBuyIn #OrganizationalGrowth

Most companies approach Succession Planning poorly. They produce a document once every few years, review it, and file it away. The exercise is not future-proof. At Nissan, we built something different. Every manager at every level was required to submit 5 successors for their own role, ranked, updated every year. The process was confidential, but people knew it existed. This created several things at once. First, managers had to actually know their people’s capabilities. You cannot produce a ranked list of five successors if you have not been paying genuine attention to how colleagues are developing. The exercise forced real talent assessment throughout the organization, not just at the top. Second, it built a pipeline of readiness. At any given time, we knew who could step into critical roles. When a position opened, we had candidates who had been identified, and already prepared through expanded responsibilities. Third, it became one of the most effective #retention tools we had. People who knew the organization was preparing them for advancement had a reason to stay. We applied this framework directly to our women in #leadership goals. Every succession list had to include at least one woman. This created ongoing pressure to develop female candidates and made the exclusion of women from the pipeline a visible management failure rather than an invisible one. The reward is highest for the candidates who have historically been overlooked. Someone who breaks into a new level in an environment that had previously excluded people like them brings energy and loyalty that is rare. They become ambassadors. They bring in more talent like themselves. The virtuous circle runs itself. A company that cannot replace any of its key leaders on short notice is carrying a significant hidden operational risk. Most organizations discover this only after the #crisis has already arrived. The succession plan is not a human resources document. It is a strategic tool. Treat it that way. How robust is the succession pipeline in your organization right now? Could you replace your three most critical roles within ninety days?

Most leadership transitions are rushed, reactive disasters. Coca-Cola just showed us the opposite. The board announced Henrique Braun will take over as CEO on March 31, 2026. James Quincey moves to Executive Chairman. Here's what makes this different: Braun spent 29 years climbing through the business. Greater China. Latin America. International Development. Then global COO this January. Every step was preparing him to run the whole system. The company gave itself four months of transition time and kept Quincey at the table as Executive Chair. No panic. No external search. No guessing if the new CEO understands how the business actually works. The mandate is clear: build on what's working. Quincey turned Coke from a soda company into a total beverage company and added ten billion-dollar brands. Braun's job is to accelerate that momentum with three priorities global growth, consumer insight, and technology. This is what good governance looks like. Most companies wait until there's a crisis or the CEO is out the door in 30 days. Coke planned this years in advance and executed it cleanly. #Leadership #SuccessionPlanning

Exiting the Chair We have all sat on Boards where the Chair may be a decent individual, but does not have what it takes to carry out the role nor the self-awareness to understand it. If this is the case then it will be up to the NEDs to take action as the longer the Chair is in situ, the more damage will be done to the company. Consequently, exiting the Chair of the Board requires a blend of governance discipline, astute diplomacy, and careful communication to preserve the integrity and professional reputation of the company and to support an orderly transition. Here are the most practical, step-by-step actions I suggest are taken: 1. Assess the Situation Objectively Before making a formal move: - Review the latest evaluation of the Chair by the Board - which hopefully will highlight performance or other concerns - Review and document board performance data — minutes, resolutions, KPIs, and recent governance reviews to ensure the boards view of “non-performance” is grounded in evidence. - Clarify accountability — distinguish whether the issue lies with the chair, the board as a collective, executive management, or external factors - Consult trusted advisors — such as your legal counsel, and / or possibly the company secretary, to identify any legal and reputational concerns. 2. Plan an Orderly Transition A sudden exit can destabilise the board and the company. So: - Set a timeline for transition (e.g., 3–6 months) aligned with key company milestones. - Identify potential successors — ideally, someone already on the board or a respected external candidate. - Engage the Nomination Committee (or equivalent) early to begin the process of identifying and approving a new chair. 3. Communicate Strategically How you frame the Chairs exit matters: - To the board: Present the Board decision to the Chair as part of normal succession and governance evolution — e.g., “After careful reflection, we believe new leadership will bring fresh perspective at a critical time.” - To shareholders/stakeholders: Keep it high-level and focused on stability and continuity, not criticism. - Internally to the Executive and staff: Be transparent about timing and supportive of ongoing initiatives, to avoid damaging morale. 4. Protect the companys reputation and Interests - Avoid post-exit disputes: Check D&O insurance, and ensure all conflicts or liabilities are cleared. - Control the narrative: Have a short, consistent statement ready for press, investors, or industry contacts.

Leading Strategy and Succession — at the Same Time As a Board Chair, NED, and strategy consultant to People Businesses, I’m increasingly asked to steward strategy development and leadership transitions simultaneously. This dual agenda is now the norm in professional services and partnership-led firms. When done right, it’s not just a moment of transition—but a real opportunity for transformation. Here are a few pearls of wisdom I’ve gathered: 🔹 1. Clarify the Strategic Mandate Without a compelling “why,” people won’t follow. Anchor both strategy and succession in real business needs—client shifts, growth ambitions, generational change. Treat them as two sides of the same coin. 🔹 2. Stabilise and Align the Leadership Transitions breed uncertainty. Be clear on transition timelines, interim roles and decision rights. Stability and alignment are critical early steps. 🔹 3. Co-Create the Strategy In professional services, strategy can’t be imposed. Involve partners, future leaders—and yes clients! The process should build momentum and insight. And bring the outside in. 🔹 4. Sequence Succession Thoughtfully Be deliberate with timing - Stagger leadership exits and entries. Match timing to key stages of strategic planning. Continuity and renewal both matter. 🔹 5. Empower Strategic Champions Strategy needs to keep moving. Identify trusted leaders across the business to drive specific workstreams—they’ll become your accelerators. 🔹 6. Communicate with Honesty and Consistency Silence breeds anxiety. Share regular updates, honour contributions, and introduce new leaders with intent and clarity. 🔹 7. Anchor in Culture and Values Transitions and strategy shifts touch the soul of a firm. Stay true to your values—and be intentional about how they (and mindsets and behaviours) need to evolve with your strategy. 🔹 8. Create Early Wins Demonstrate the new direction through quick, tangible outcomes. They build belief, credibility and momentum. 🔹 9. Invest in Future Leaders Use this moment to stretch and elevate the next tier. Give them real roles in strategy and change—they are your future stewards. 🔹 10. Manage Energy and Focus This work is intellectually and emotionally demanding. Be conscious of where you put your energy. Support your teams to stay resilient and focused. Leading strategy and succession at the same time isn’t easy—but it can be transformative. When approached with clarity, inclusion, and courage, it creates lasting impact. What have you found helps steer through these moments? #Leadership #Strategy #ProfessionalServices #SuccessionPlanning #PeopleBusiness #BoardLeadership #FutureOfWork

𝗪𝗵𝘆 𝗱𝗼 𝗳𝗮𝗺𝗶𝗹𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝘀𝘁𝘂𝗺𝗯𝗹𝗲 𝗱𝘂𝗿𝗶𝗻𝗴 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗶𝗼𝗻? Sona Comstar has recently grabbed headlines, with disputes around control, trust creating uncertainty and potential legal battles. The conflict highlights the 𝘧𝘳𝘢𝘨𝘪𝘭𝘪𝘵𝘺 of succession transitions. They are not the first. The Pritzkers, the Dassaults, the Murdochs; the Murugappa group, Kalyani Group, Yes Bank have all faced succession challenges. My first experience of 𝘴𝘶𝘤𝘤𝘦𝘴𝘴𝘪𝘰𝘯 𝘤𝘰𝘮𝘱𝘭𝘦𝘹𝘪𝘵𝘺 was working hands-on during the intense business separation at 𝐑𝐞𝐥𝐢𝐚𝐧𝐜𝐞, India. It remains one of the most complex separations in corporate history and a case study in how family, legacy, and power collide in multiple ways. Over the last 15 years, I have advised multiple family and investor-led enterprises across industries, helping them navigate transitions and exits. The 𝘤𝘰𝘳𝘦 𝘵𝘳𝘶𝘵𝘩 is always the same: 𝐒𝐮𝐜𝐜𝐞𝐬𝐬𝐢𝐨𝐧 𝐢𝐬 𝐫𝐚𝐫𝐞𝐥𝐲 𝐚𝐛𝐨𝐮𝐭 𝐣𝐮𝐬𝐭 𝐜𝐡𝐨𝐨𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐧𝐞𝐱𝐭 𝐥𝐞𝐚𝐝𝐞𝐫. Family business owners often do not want to open the conversation at all. It feels too sensitive, too disruptive, or too distant to confront. 𝐘𝐞𝐭 𝐚𝐯𝐨𝐢𝐝𝐚𝐧𝐜𝐞 𝐢𝐬 𝐭𝐡𝐞 𝐯𝐞𝐫𝐲 𝐫𝐨𝐨𝐭 𝐨𝐟 𝐟𝐫𝐚𝐠𝐢𝐥𝐢𝐭𝐲. As a succession advisor, I see it as my responsibility to create the space for dialogue, to ask uncomfortable questions, and to help families address what they would rather postpone. Effective succession planning requires: ▸Confronting unspoken assumptions about what happens next ▸Acknowledging the unmet need for power, authority, and control ▸Separating emotional ownership from responsible leadership ▸Distilling what legacy truly means, for each family member ▸Retaining primary focus on what the business needs Often, businesses turn to a valuation or law expert, but the advice tends to be transactional - it does not unravel what lies in the unconscious, deepening rifts. When succession is not transparent, employees lose morale, shareholders lose confidence, and customers lose trust. Families break; legacy perishes. This is precisely where an external consultant becomes essential. An outside advisor brings objectivity, structure, and the courage to surface unspoken truths. 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐝𝐨 𝐧𝐨𝐭 𝐡𝐚𝐩𝐩𝐞𝐧 𝐛𝐲 𝐚𝐜𝐜𝐢𝐝𝐞𝐧𝐭. They are built on open dialogue, clear systems, and a commitment to ongoing development. If your family enterprise is preparing for a generational/professional handover or an investor entry, I invite you to reflect on the 𝘶𝘯𝘴𝘱𝘰𝘬𝘦𝘯 𝘤𝘰𝘯𝘷𝘦𝘳𝘴𝘢𝘵𝘪𝘰𝘯𝘴 that need to happen. #familybusiness #familyoffice #succession #ChangingOrbits

Last year, we led a CEO mandate where one candidate was almost ruled out of the process, purely because they had not held the title before.   They were ultimately appointed on the strength of their strategic clarity, their ability to prioritise growth, and a track record of leading through data across complex ecosystems, not because they had held the CEO title before.   Situations like this are becoming more common.   Data from Russell Reynolds Associates indicates that 86% of CEOs appointed globally last year were first-time CEOs.   For Boards and Talent Acquisition, this is a material shift.   “Readiness” is no longer defined primarily by prior title. It is increasingly assessed through judgement, learning agility, and the ability to operate effectively in complex, ambiguous environments.   However, many leadership hiring processes still rely heavily on precedent as a proxy for capability.   The more advanced organisations are moving beyond this.   They are placing greater emphasis on trajectory, decision quality, and how an individual is likely to perform in role, rather than whether they have held the title before.   At CEO level, the question is no longer “have they held this role before”?   It is whether the individual can set direction, prioritise growth, and lead with data across an increasingly complex ecosystem.   Not simply whether they have held the title before.

Most CEOs will tell you talent retention is their biggest challenge, but that's only half the truth. Lack of succession planning is the real culprit. Our latest CEO Survey revealed that 37% of leaders struggle with retention, and many admit they lack robust succession plans. Here’s the risk: if the next generation of leaders isn’t ready to step up, even the most successful firms could face a leadership void in the years ahead. I’ve seen it firsthand. Many firms are so focused on today’s hiring shortages that they overlook the long game. The lack of a sophisticated succession plan is a major risk. Here are four strategies for building a stronger leadership bench: 1. Spot hidden talent Look beyond titles. Your next great leader is the manager quietly solving problems behind the scenes. Creating opportunities for these individuals to step into higher-stakes roles can reveal untapped potential. 2. Build leadership DNA into culture Succession planning isn’t just an HR exercise. It involves embedding mentorship, collaboration, and growth into the everyday fabric of your firm. Leaders should be intentional about sharing their knowledge. 3. Adapt to new generational needs The workforce is changing. Younger leaders expect different things from their careers, like flexibility, purpose, short-term incentives and opportunities for impact. 4. Create a continuous development pipeline.   Leadership development shouldn’t happen only in reaction to immediate needs. Introduce leadership academies to prepare future leaders at different career stages. Incorporate real-time feedback, coaching, and self-assessment tools into development plans. I’ve learned that succession planning is less about replacing people and more about future-proofing your culture. I'd like to hear about any succession planning strategies that you have in place.