The Trend of CEOs Transitioning to Executive Chairmen

Interesting 2016 paper by Susan Schroeder for CAP, an executive compensation consulting firm:

Companies transitioning from a long-term Chief Executive Officer and involved in CEO succession planning, especially for a company founder or head of a family-owned company, are looking to retain and capitalize on the outgoing CEO’s institutional knowledge while ensuring a smooth transition to the new leader. In response to this need, some creative companies are transitioning their outgoing Chief Executive Officer to the position of Executive Chairman of the Board. The Executive Chairman position allows the organization to leverage the former CEO’s personal client relationships and institutional knowledge while allowing him to retain employee rights and benefits, assist in the transition process, and gradually phase out of CEO responsibilities.

That’s what Jeff Bezos is doing at Amazon. It was also Apple’s plan when Steve Jobs stepped down as CEO in August 2011, if he’d been able to stay a few steps ahead of the cancer. A year ago Bob Iger made this transition at Disney.

Tuesday, 2 February 2021