As 2023 gets under way, newly reinstalled Disney CEO Bob Iger is navigating his proverbial “first 100 days” for the second time — although this time he’s limited to a two-year term. Starbucks will soon welcome a new CEO taking the reins from founder Howard Schultz, who’s on his fourth attempt at succession. These are the most recent vivid reminders that not only are succession setbacks common, but also that transitions from “iconic” CEOs are often the riskiest.
Beware the Transition from an Iconic CEO
Disney, Starbucks, GE, and others have stumbled painfully when it comes to CEO succession.
February 01, 2023
Summary.
Disney, Starbucks, P&G, Microsoft, GE, Ford, Twitter, Dell, Nike, and scores of other marquee companies in their prime have stumbled painfully in CEO transitions. And we may see more stumbles to come: Almost a quarter of Fortune 200 companies are led by CEOs who’ve been in place for a decade or longer. What makes succession failures especially unfortunate is that they are largely self-imposed wounds. The authors, who have nearly three decades advising more than 1,000 companies on CEO succession, discuss the mindsets that lead boards down the wrong path, and offer seven strategies to ensure a healthy succession pipeline.