Developing a Succession Policy Part 4


We hope you’ve found our series on developing a succession policy helpful as your organization faces a CEO transition. If you’re just now joining us, click here for Part 1, Part 2 and Part 3.

Without further ado, our final part in this four part series recommends…

Key Factors in Baselining the new Chief Executive Officer’s Compensation Package:

  • What correlation should there be between the outgoing chief executive’s compensation and the incoming chief executive officer’s compensation?
  • If the outgoing Chief Executive has been in the position for several years, odds are that his/her compensation
    hasn’t kept pace with the market.
  • What role will compensation surveys play in the determining the new chief executive’s salary?
  • Should the board use a compensation consultant to assist in determining the salary range or level?

Have you successfully completed a CEO transition? Please comment with any additional tips that your board found helpful. As always, if you are seeking counsel, we are here to help.

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Dr. Tommy Thomas Tommy Thomas is Lead Partner of JobFitMatters® as well as Board Member and Managing Director of parent entity SIMA® International. He specializes in cabinet-level retained executive search for nonprofit and faith-based organizations.