Lululemon’s appointment of first-time CEO Heidi O’Neill is part of a broader corporate trend, as boards increasingly turn to internal and near-internal candidates amid a thinning executive pipeline. This article explores why these bets, while offering continuity and institutional credibility, shift risk rather than eliminate it – and examines why so many CEO transitions quietly unravel within their first few years.
James (Jim) Drury III, CEO of JamesDruryPartners, explains why board and CEO misalignment is often the real culprit behind failed transitions – “CEO succession is the ultimate test of a board’s strength, and when the bet doesn’t pay off, it reflects on the board as much as on the CEO.”
Read the full article here: https://ceofeature.com/boards-are-betting-on-first-time-ceos-the-real-risk-is-governance/
Article by: Matthew Kayser, published in: CEO Feature
