The Board’s Role in a Successful CEO Transition

Reprinted with permission from the National Association of Corporate Directors after originally appearing as an online article on July 9, 2026.

Most boards devote significant time to selecting the next CEO, but few apply the same discipline to what happens after the choice is made.

Once a new CEO is identified, the board’s role shifts to helping the individual establish legitimacy, clarify priorities, and navigate the first year with the right balance of support and independence.

This is where many transitions lose momentum: Boards often view the selection decision as the finish line, rather than the starting point. The outgoing CEO’s influence can linger longer than expected. Internal candidates who were not chosen may disengage or leave the organization. Directors sometimes hesitate to provide candid feedback to the new CEO to give him or her room to lead.

In Russell Reynolds Associates’ Global Leadership Monitor H1 2026, 73 percent of CEOs surveyed said they understood key transition priorities, potential risks, and mitigation strategies during their first 12 to 18 months in the role. However, many respondents believe they lacked access to mechanisms for improvement, with only 45 percent saying they had clear performance milestones and 58 percent saying they received timely feedback from the board that enabled them to course correct when needed.

These findings suggest that while boards recognize the importance of CEO transitions, they don’t always provide the structure that enables new CEOs to succeed. The challenge is translating that recognition into a deliberate transition process with clear expectations, milestones, and feedback mechanisms.

The Issues Boards Should Manage Early

CEO transitions require more than onboarding. Onboarding often focuses on meetings, materials, introductions, and logistics. These matter, but they do not address the more consequential work of transferring authority to the new CEO. To do this, below are key actions the board should take when starting a CEO transition.

Define the new CEO’s mandate. What has this CEO been selected to do? Will he or she provide continuity, accelerate growth, reset culture, rebuild stakeholder confidence, or transform the operating model? If directors are not aligned on the answer, the CEO may spend the early months of his or her tenure interpreting different visions of the role from different board members.

Clarify decision rights. In the period between appointment and the first day on the job, decisions still need to be made. Some belong solely to the outgoing CEO, while others should involve the incoming CEO—particularly if impacts of the decision will come after the CEO transition. A few examples of decisions that should belong to the new CEO include senior talent moves, major customer or investor commitments, and capital allocation choices. The board should establish written guardrails at the outset, defining which categories of decisions require consultation with the incoming CEO and which remain with the incumbent.

Establish explicit boundaries with the outgoing CEO. Knowledge transfer can be valuable, especially when a predecessor has deep institutional knowledge or important external relationships. But too much predecessor involvement can weaken the incoming CEO’s authority. The board should define how long the outgoing CEO will remain involved, what issues he or she will support, and where his or her role ends. That might mean asking the outgoing CEO to help transfer key customer, investor, regulator, or government relationships for a defined period, while making clear that the predecessor will not attend executive team meetings, advise individual leaders, or shape decisions on strategy, talent, or operating model once the new CEO is in the seat.

Develop a meaningful relationship with the new CEO. Trust is rarely built in formal meetings. Early one-on-one time with each director helps the CEO understand individual perspectives and board dynamics. It helps board members understand where the new CEO may need support. And it helps both parties create the trust needed when the CEO eventually brings a difficult decision to the board.

Consider shifting board operating norms. A new CEO may use the board differently than his or her predecessor did, and board members may need to recalibrate how they provide advice, challenge assumptions, and offer feedback. Establishing early alignment on the working relationship can prevent directors from defaulting to habits that do not fit the CEO’s mandate or working style. That includes clarifying which issues warrant board engagement, how the CEO wants to interact with the chair or lead director, when individual director input is helpful, and where management authority should remain.

The board shouldn’t run the CEO’s transition; its job is to shape the conditions that help the transition succeed. Boards that remain engaged, provide clarity, and establish an effective transition process can help new CEOs gain footing more quickly and avoid unnecessary setbacks.

_{The views expressed in this article are the authors’ own and do not represent the perspective of NACD.}

_{Russell Reynolds Associates is a NACD strategic content partner, providing directors with critical and timely information, and perspectives. Russell Reynolds Associates is a financial supporter of the NACD.}

Authors

Dean Stamoulis is a senior member of Russell Reynolds Associates’ Board and CEO Advisory Partners in the Americas.
Ty Wiggins is the global lead of Russell Reynolds Associates’ CEO and Executive Transition practice.